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You have just applied for a 30-year $100,000 mortgage at a rate of 10%. What must the annual payment be? *Make sure to input all currency answers without any currency symbols or commas, and use two decimal places of precision.

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Answer: $10,607.92

Explanation:

The annual payment will be constant which means that it is an annuity.

The mortgage value is therefore the present value of the annuity.

Present value of annuity = Annuity * ( 1 - (1 + rate) ^ -number of years) / rate

100,000 = Annuity *  ( 1 - (1 + 10%) ^ -30) / 10%

100,000 = Annuity * 9.4269144669883

Annuity = 100,000 / 9.4269144669883

= $10,607.92

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