John takes out a loan of $150,000 to buy a house. He is offered a 15-year loan by the bank, at an interest rate of 5% per year. What is the annual loan payment John must make?

15104,994511758 average a year

Explanation:

1st year he has to pay 10500

2nd year 11025

3rd year 11576,25

4th year 12155,0625

5th year 12762,815625

6th year 13400,95640625

7th year 14071,004226562

8th year 14774,5543789

9th year 15513,2821597984

10th year 16288,946267773

11th year 17103,393581161

12th year 17958,563260219

13th year 18856,49142323

14th year 19799,315994391

15th year 20789,28179411

Simply adding a 5% rate to a previous year

In this way a total is

226574,91764658

Divided in number of years (15) gives an average of

15104,94511758 a year