On January 1, 2016, Charles Jamison borrows $40,000 from his father to open a bu

Question

On January 1, 2016, Charles Jamison borrows $40,000 from his father to open a business.charles is the beneficiary of a trust created by his aunt from which he will receive $25,000 on January 1, 2026. Hey sans an agreement to make this amount payable to his father in further to pay his father equal annual amount from January 1, 2017 to January 1, 2025 inclusive in retirement of the debt interest to 12% per year what are the annual payments On January 1, 2016, Charles Jamison borrows $40,000 from his father to open a business.charles is the beneficiary of a trust created by his aunt from which he will receive $25,000 on January 1, 2026. Hey sans an agreement to make this amount payable to his father in further to pay his father equal annual amount from January 1, 2017 to January 1, 2025 inclusive in retirement of the debt interest to 12% per year what are the annual payments

Explanation / Answer

suppose X be the annual installment payment

hence 40000 = X * pvifa(12%,9) + 25000 pvif (12%, 10)

or 40000 = X* pvifa(12%, 9) + 8049.33

Or X*5.49=40000-8049.33

or X = 5821.8

answer= $5821.8 per year

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