What size loan must we take today with a 6% compound interest rate to have end-of-year payments of $1400, $1320, $1240, $1160, and $1080 for the next five years, respectively? In other words, if you take out a loan today, and after making all five payments, above, the loan is paid off, what is the value of that loan?

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To calculate the size of the loan you must take today with a 6 compound interest rate to have endofy... View the full answer