Equal annual installments :
If loan amount is 500000 and you have to repay it in 5 equal annual installments then each installment will be 100000
Equated annual installments :
Loan = 500000 term= 6 yrs rate = 15%
Installment = 500000/PVAF(15%,6)
But you should keep it in mind that if the question says repay the PRINCIPAL in 5 equal annual installments then you need to divide the loan amount by 5. But if it only says repay the LOAN in 5 equal/equated installments then use the PVAF formula.
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