Equal annual end-of-year payments


Problem:

I would like to see how to solve the following and the formulas used:

A company wants to borrow $200,000 from a bank and repay in five equal annual end-of-year payments, including interest. If the bank wants to earn a 10% rate of return on the loan, what should the payment be? Ignore taxes and default risk.

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Finance Basics: Equal annual end-of-year payments
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