Annuity calculation (LO3). Kim Barth decides to start a small restaurant near a busy shopping mall. She applies for a loan of $150,000, to be repaid in five annual installments, with each installment...

Annuity calculation (LO3). Kim Barth decides to start a small restaurant near a busy shopping mall. She applies for a loan of $150,000, to be repaid in five annual installments, with each installment due at the end of each of the next five years. The bank charges an interest rate of 10%, compounded annually.

Required:

Compute the annual installment amount. Use the annuity tables at the end of the chapter.