A company borrowed $ 10 million to buy copying machines at 8% interest rate. The firm wants

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A company borrowed $ 10 million to buy copying machines at 8% interest rate. The firm wants to repay the loan by making equal annual payments over 10 years.

a) find the annual payments the company has to make

b) Out of the annual payment, show how much is the repayment of principal and how much is interest payment in 2 years.

Related Book For answer-question

Contemporary Business Mathematics with Canadian Applications

ISBN: 978-0133052312

10th edition

Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs

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Posted Date: Apr 03, 2024 08:07 PM

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A company borrowed $ 10 million to buy copying machines at 8% interest rate. The firm wants

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Expert Answer:

Loan Payment Calculations We can solve this problem using the Loan Payment Formula LPM for equal ann... View the full answer

Contemporary Business Mathematics with Canadian Applications

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