4-94. The Stafford plan now offers student loans at 4% annual interest. After two years the interest

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4-94. The Stafford plan now offers student loans at 4% annual interest. After two years the interest rate will increase to 6% per year. If you borrow $5,000 now and $5,000 each year thereafter for a total of four installments of $5,000 each, how much will you owe at the end of the fourth year? Interest is computed at the end of each year. (4.13)

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Engineering Economy

ISBN: 9780134870069

17th Edition

Authors: William Sullivan, Elin Wicks, C Koelling

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