Basics of Engineering Economy 2nd Edition by Anthony Tarquin,Leland Blank

Exercise 2

When interest is charged on the unrecovered bal­ance, if you borrow $10,000 at 10% per year in­terest and repay the loan in equal payments over a 5-year period, the payment amount is $2638 per year. How much will the annual payment be if the interest rate is charged on the initial loan amount instead of the unrecovered balance