Question: Each payment covers the interest expense plus reduces principal Consider a 4 year loan with annual payments. The interest rate is 8% ,and the principal

Each payment covers the interest expense plus reduces principal Consider a 4 year loan with annual payments. The interest rate is 8% ,and the principal amount is $5,000. What is the annual payment? 4N 8I/Y 5,000 PV CPT PMT = -1,509.60

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