Xiao Li applied to the bank for a loan of 500,000 yuan to buy a house. The annual interest rate of the loan is 65,438+02%, which will be paid off in 20 years. Calculation: If you compound interest every year, how much will it be?
The annual repayment of equal principal and interest is actually the recovery of annuity funds (equal payment), and the application formula is as follows.
Annual repayment amount = 500,000 *12%/(1-(1+12%)-20) = 66,939.39 yuan.
Note: (1+ 12%)-20 is the reciprocal of (1+ 12%) 20. 20 is the 20th power.