The valueof annual interest payments (without paying down the debt) = (Principle (1 + APR/4)^n*4) - Principle = ($100000 (1 + 0.08/4)^1*4) - 100000 = ($100000 * 1.08243216) - 100000 = 108243.22 - 100000 = $8243.22 Solution The valueof annual interest payments (without paying down the debt) = (Principle (1 + APR/4)^n*4) - Principle = ($100000 (1 + 0.08/4)^1*4) - 100000 = ($100000 * 1.08243216) - 100000 = 108243.22 - 100000 = $8243.22.