The yearly payment amount for a loan of $40,000 at 7% interest and for 5 years that Perry Mazza borrowed is $9,755.63.
The annual payments can be computed using an online finance calculator as below.
The results show that a total interest of $8,778.15 will be paid by Perry Mazza.
N (# of periods) = 5 years
I/Y (Interest per year) = 7%
PV (Present Value) = $40,000
FV (Future Value) = $0
Results:
PMT = $9,755.63
Sum of all periodic payments = $48,778.15 ($9,755.63 x 5)
Total Interest $8,778.15
Thus, the yearly payment amount for a loan of $40,000 at 7% interest and for 5 years that Perry Mazza borrowed is $9,755.63.
Learn more about computing annual payments at https://brainly.com/question/24576997
