This is a loan amortization problem where we calculate the equal annual payment for a loan using the annuity formula:

$A = \frac{P r}{1 - (1 + r)^{-n}}$

where:

• $A$ = annual payment (what we need to find),
• $P = 800,000$ (loan amount),
• $r = \frac{8\%}{100} = 0.08$ (annual interest rate),
• $n = 10$ (number of years).

Substituting the values:

$A = \frac{800,000 \times 0.08}{1 - (1.08)^{-10}}$

Let's compute this step by step. Given values P = 800000 # Loan amount r = 0.08 # Annual interest rate n = 10 # Number of years

Compute the annual payment A

A = (P * r) / (1 - (1 + r) ** -n) AThe annual payment you need to make is $119,223.59.

Would you like a breakdown of the calculation or more details?

Here are five related questions you might find useful:

1. How does changing the interest rate affect the annual payment?
2. What would the payment be if the loan term were 15 years instead of 10?
3. How much total interest will be paid over the life of the loan?
4. How does making an extra payment each year impact the total loan cost?
5. What is the outstanding loan balance after 5 years of payments?

Tip: If you want to pay less interest over time, consider making additional principal payments each year!