Just Water Company needs to purchase water purification equipment at a cost of $250,000. A loan is

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Just Water Company needs to purchase water purification equipment at a cost of $250,000. A loan is obtained from the local bank for the full amount at an interest rate of 12.5%. The terms of the loan require equal payments at the end of each year over a 5-year period. Calculate the total annual loan payment, and show the amount of interest and the amount of principal paid for each year.

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Principles Of Managerial Finance

ISBN: 9781292018201

14th Global Edition

Authors: Lawrence J. Gitman, Chad J. Zutter

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