Answer:
Each payment is of $6595
Explanation:
Amount borrowed by company= $25000
No. of installments = 5
Interest rate = 10%
We are supposed to find how much are each of the payments
Formula : [tex]Amount =I (\frac{1-\frac{1}{(1+r)^n}}{r})[/tex]
I = installment
r = rate of interest
n = No. of installments
So, [tex]25000 =I (\frac{1-\frac{1}{(1+0.1)^5}}{0.1})\\\frac{25000}{(\frac{1-\frac{1}{(1+0.1)^5}}{0.1})}=I\\6594.93=I[/tex]
So, Each payment is of $6595
