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1. The interest rate charged on a loan of $85,000 is 7.75% compounded annually. If the loan is to be paid off over seven years,
- 1. The interest rate charged on a loan of $85,000 is 7.75% compounded annually. If the loan is to be paid off over seven years, calculate the size of the annual payments.
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- 2. A $10,000 debt is repaid by payments of $800 at the end of each quarter for five years. What semiannually compounded nominal interest rate was charged on the loan?
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To calculate the size of the annual payments for the loan one can use the formula for the a...
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077400163
