You take out a loan to buy a new audio system. Your equal annual payments are 20

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You take out a loan to buy a new audio system. Your equal annual payments are 20 percent of the amount you borrowed. The interest rate on the loan is 7 percent compounded annually.

a. Determine the number of years you will be required to make payments (may be a non-whole year such as 4.791, for example).

b. If you make the same payment for an integer number of years, rounding up from your answer in part (a), what interest rate will you be paying?

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Principles Of Engineering Economic Analysis

ISBN: 9781118163832

6th Edition

Authors: John A. White, Kenneth E. Case, David B. Pratt

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Question Posted: Mar 26, 2024 01:01 AM

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You take out a loan to buy a new audio system. Your equal annual payments are 20

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a To determine the number of years required to make payments we can use the formula for the present value of an ordinary annuity Present Value Payment ...View the full answer

Principles Of Engineering Economic Analysis

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