c. How large must each payment be if the loan is for $50,000, the interest rate is

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c. How large must each payment be if the loan is for $50,000, the interest rate is 10%, and the loan is paid off in equal installments at the end of each of the next 10 years? This loan is for the same amount as the loan in part

b, but the payments are spread out over twice as many periods. Why are these payments not half as large as the payments on the loan in part b?

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Financial Management Theory And Practice

ISBN: 9781439078105

13th Edition

Authors: Eugene F. Brigham, Michael C. Ehrhardt

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