# Loan?Annuity Question

• February 12th 2009, 09:56 AM
GreenandGold
Loan?Annuity Question
I dont know where to start. Thanks for the help

1. How much can you borrow if the interest rate is 5% and you can afford to pay $7000 at the end of each year and you want to pay the loan off in 12 years. • February 12th 2009, 07:26 PM mathaddict Quote: Originally Posted by GreenandGold I dont know where to start. Thanks for the help 1. How much can you borrow if the interest rate is 5% and you can afford to pay$7000 at the end of each year and you want to pay the loan off in 12 years.

Perhaps you can view this thread : http://www.mathhelpforum.com/math-he...s-problem.html

and use this formula :

$A \;=\;P\,\frac{i(1+i)^n}{(1+i)^n-1}
$