To calculate the annual payment, you can use the formula for an annuity which is:

PMT = P * r * (1 + r)^n / ((1 + r)^n - 1)

Where:
PMT = annual payment
P = principal amount (the loan amount)
r = annual interest rate (in decimal)
n = number of years

Given:
P = $8,000,000
r = 10% or 0.10
n = 10 years

Substituting these values into the formula:

PMT = $8,000,000 * 0.10 * (1 + 0.10)^10 / ((1 + 0.10)^10 - 1)

First, calculate the value of (1 + r)^n:
(1 + 0.10)^10 = 2.59374

Then, substitute this value back into the formula:

PMT = $8,000,000 * 0.10 * 2.59374 / (2.59374 - 1)
PMT = $8,000,000 * 0.10 * 2.59374 / 1.59374
PMT = $1,300,000

So, the annual payment would be approximately $1,300,000.

Question

To calculate the annual payment, you can use the formula for an annuity which is:

PMT = P * r * (1 + r)^n / ((1 + r)^n - 1)

Where:
PMT = annual payment
P = principal amount (the loan amount)
r = annual interest rate (in decimal)
n = number of years

Given:
P = $8,000,000
r = 10% or 0.10
n = 10 years

Substituting these values into the formula:

PMT = $8,000,000 * 0.10 * (1 + 0.10)^10 / ((1 + 0.10)^10 - 1)

First, calculate the value of (1 + r)^n:
(1 + 0.10)^10 = 2.59374

Then, substitute this value back into the formula:

PMT = $8,000,000 * 0.10 * 2.59374 / (2.59374 - 1)
PMT = $8,000,000 * 0.10 * 2.59374 / 1.59374
PMT = $1,300,000

So, the annual payment would be approximately $1,300,000.

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