A bank loan requires you to pay $70,000 at the end of each of the next eight

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A bank loan requires you to pay $70,000 at the end of each of the next eight years. The interest rate is 8%.

a. What is the present value of these payments?

b. Calculate for each year the loan balance that remaining outstanding, the interest payment on the loan and the reduction in the loan balance.

Related Book For answer-question

Personal Finance An Integrated Planning Approach

ISBN: 978-0136063032

8th edition

Authors: Ralph R Frasca

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Posted Date: May 04, 2021 04:54 AM

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A bank loan requires you to pay $70,000 at the end of each of the next eight

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Personal Finance An Integrated Planning Approach

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