Ask Question
15 June, 11:25

Hometown Builders is borrowing $195,000 today for four years. The loan is an interest-only loan with an APR of 7.65 percent. Payments are to be made annually. What is the amount of the first annual payment

+1
Answers (1)
  1. 15 June, 11:32
    0
    Answer: $14,917.50

    Explanation:

    Amount Borrowed = $195,000

    Years = 4 Years

    APR = 7.65% = 0.0765

    Therefore

    Payment Year 1 = (Amount Borrowed x APR)

    Payment Year 1 = ($195,000 x 0.0765)

    Payment Year 1 = $14,917.50
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Hometown Builders is borrowing $195,000 today for four years. The loan is an interest-only loan with an APR of 7.65 percent. Payments are ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers