**Minimum yearly repayment (year 1): $9,857.98**

Working:

- P = $50,000; r = 8.77% = 0.0877; n = 7 years
- MYR = P * r / (1 - (1 + r)^-n)
- (1 + r)^-n = 1.0877^-7 = 0.55518292
- 1 - 0.55518292 = 0.44481708
- Numerator: 50,000 * 0.0877 = 4,385.00
- MYR = 4,385.00 / 0.44481708 = 9,857.9849 ≈ **$9,857.98**

Controlling authority: **section 109E of the Income Tax Assessment Act 1936 (Cth)** (Division 7A of Part III), which sets the minimum yearly repayment rule, with the amortisation formula in s 109E(6) and the benchmark interest rate defined in s 109N(2) (published annually by the ATO).