t time t=0 you borrow $5,000 at an interest rate of 6% per annum. The loan agreement is unusual; it requires that at the end of every year, you make an interest payment to settle whatever interest is due for that year, and then you also pay off $1,000 worth of principal. The interest payment due at the end of the fifth year (i.e., at time t=5) is how much?

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This is a problem of calculating the interest and principal payments ... View the full answer