Annual fund recovery formula: a = p× I/[1-(1+I) (-n)]

A stands for annuity, that is, the amount of money you have to pay back with the same principal and interest every year.

I stands for interest rate, which is your annual interest rate of 6. 12%.

N represents the number of interest-bearing periods, here is 20, and n in the formula represents the power of n.

P represents the present value of the annuity, that is, 1 10000.

Substitution formula: a =110000 * 6.12/[1-(1+6.12%) (-20)]

Found A=9548.52

That is to say, you have to pay back 9548.52 yuan every year, which is equivalent to 9548.52 yuan/12 = 795.438+0 yuan per month.

Supplement: Annual capital recovery refers to the equal recovery of initial investment capital or repayment of debts within the agreed period. These are all part of the annuity in financial management. It is not difficult to read a book if you want to fully understand it.