Mar. ​1, 2018​: Borrowed $525,000 from Bartow Bank. The 15​- ​year, 7​% note requires payments due​ annually, on March 1

To calculate the annual payment, we first need to find the total interest for one year: Total interest = Principal x Rate Total interest = $525,000 x 0.07 Total interest = $36,750 So each annual payment will consist of $35,000 principal plus $36,750 interest, for a total of: Annual payment = Principal + Interest Annual payment = $35,000 + $36,750 Annual payment = $71,750 Therefore, on March 1 of each year, the borrower must make a payment of $71,750 to Bartow Bank, consisting of $35,000 principal and $36,750 interest. This will continue for 15 years until the loan is fully paid off.