You have borrowed SEK 40,000 from your friend on the condition that you repay the loan with the same amount payments once a year, at the end of December, for 5 years with 8% interest. Calculate the annual annuiteterna.

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Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.