Javier borrows $50,000 from a local bank at an APR of 9%, compounded monthly. His monthly payments

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Javier borrows $50,000 from a local bank at an APR of 9%, compounded monthly. His monthly payments amount to $50,000 (A/P, 0.75%, 60) = $1,040 for a 60-month loan. If Javier makes an extra payment on the first month of each year, his repayment duration for the loan will be reduced by how many months?

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Engineering Economy

ISBN: 978-0133439274

16th edition

Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

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