A farmer purchased 235 acres of land for $4,900/acre. He paid 25% down and obtained a loan for the balance at 6.75% APR over a 20-year period. How much is the annual payment? (Simplify your answer completely. Round your answer to the nearest cent.)

Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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A farmer purchased 235 acres of land for $4,900/acre. He paid 25% down and obtained a loan for the balance at 6.75% APR over a 20-year period. How much is the annual payment? (Simplify your answer completely. Round your answer to the nearest cent.)

 

Expert Solution
Step 1

Given:

  First we will find the amount of loan the farmer has taken 

  Calculating the amount of loan taken by the farmer:

  Cost of land = area of land×cost per unit area

                      =235×4900

                         =$11,51,500

The farmer has paid 25% of the cost.

    So,

   

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