Question: Use drop payment formula in detail. A loan of $84,000 is repaid with payments of $10,000 at the end of each year. The annual effective

Use drop payment formula in detail.

A loan of $84,000 is repaid with payments of $10,000 at the end of each year. The annual effective discount rate is 6%. The first payment is due 4 years after the loan is taken out. Find the amount of the drop payment. (a) (b) (c) (d) 7674 7699 7724 7748 7772

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