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Aliwohaish12
Use the formula of the present value of an annuity ordinary which is
Pv=pmt [(1-(1+r)^(-n))÷r]
Pv present value 4500
PMTthe actual end-of-year payment?
R interest rate 0.12
N 4 equal annual installments
Solve the formula for PMT
PMT=pv÷[(1-(1+r)^(-n))÷r]
PMT=4,500÷((1−(1+0.12)^(−4))÷(0.12))
PMT=1,481.55
abiolataiwo2015

The actual end-of-year payment is $1,482

Using this formula

Actual end-of-year payment=Amount  borrowed/PVAF (12% , 4 years)

Let plug in the formula

Actual end-of-year payment=$4,500/3.0373

Actual end-of-year payment=$1,481.58

Actual end-of-year payment=$1,482 (Approximately)

Inconclusion The actual end-of-year payment is $1,482.

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