last year (2005-2006) you took out a a student loan for $12,000.this year (2006-

Question

last year (2005-2006) you took out a a student loan for $12,000.this year (2006-2007), you got one for $11,000. Next year(2007-2008) you plan on borrowing $10,000. You won't take a longout the following year (2008-2009), and you graduate in 209, if youwant to pay the loan back in 10 equal annnual payment and theinterest rate is 4%, what will your yearly payments be?

I can't use excel or anything like to solve these problems.
I have to use equations such as F=P(F/p,i,n) or vice versa with Pand F.
or A=P(A/P,i,n) etc.

Explanation / Answer

Loan Amortization Table

Payment

Beginning Balance

Annual Payment

Interest Paid

Principal Paid

Ending Balance

Total LoanAmount   = $12,000 + $11,000 + $10,000 Total Loan Amount   =  $33,000 Calculating Yearly Payment : (Using MS-Excel PMT Function) Interest Rate (Rate) 4% Number of Periods (Nper) 10 Present Value of Loan (PV) -$33,000 Yearly Payment (PMT) $4,068.60

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