A to Z Mortgages made a home equity loan to your friend. For a 4-year loan of

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A to Z Mortgages made a home equity loan to your friend. For a 4-year loan of $10,000 at 10% per year, what annual payment must he make to pay off the entire loan in 4 years if interest is charged on

(a) The original principal amount of $10,000, and

(b) The unrecovered balance?

(c) What is the difference in the annual payments between the two bases for interest? Which method requires more money to repay the loan?

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Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

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Question Posted: Dec 12, 2018 10:32 AM

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A to Z Mortgages made a home equity loan to your friend. For a 4-year loan of

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Engineering Economy

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