Question

 If you pay 5000$ at a rate %10 in five years, by payingfive equal installments at the end of the every year. How much is each installment?

Answer 1

$PV=\frac{A{(1-(1+r)^-n)}}{r}$ Where

PV= $5000

A= Annual installment

r= 10%

n=5 years.

$5000=\frac{A{(1-(1+0.1)^-5)}}{0.1}$

A= $1318.99