Question

A loan Agreement specifies that a payment of $133.33 are to be made each month for five years. the annual interest rate specified is 6 percent. What is the amount of loan?

Answer 1

If a loan agreement specifies that a payment of $133.33 are to be made each month for 5 years and the annual interest rate specified is 6 percent, the amount of loan will be: L = 133.33*12*5/1.06^5 = $5977.92