## Minimum Yearly Repayment

**MYR = $9,643.47**

### Working

Using the formula:

$$MYR = \frac{P \times r}{1 - (1 + r)^{-n}}$$

Where:
- **P** = $50,000
- **r** = 0.0877
- **n** = 7

$$MYR = \frac{50{,}000 \times 0.0877}{1 - (1.0877)^{-7}}$$

$$MYR = \frac{4{,}385}{1 - 0.55425}$$

$$MYR = \frac{4{,}385}{0.44575}$$

$$MYR = \$9{,}643.47$$

### Controlling Authority

The **Income Tax Assessment Act 1936 (Cth)**, specifically **Division 7A** (sections 109D–109E), governs the minimum yearly repayment rule. The minimum yearly repayment is calculated in accordance with the formula in **section 109E(3)**, using the benchmark interest rate determined under **section 109N** and specified by the ATO for the relevant income year.