Maria Espinosa borrowed $15,000 from the bank and agreed to repay the loan at 8 percent annual
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Maria Espinosa borrowed $15,000 from the bank and agreed to repay the loan at 8 percent annual interest over four years, making payments of $4,529 per year. Because part of the bank’s payment from Ms. Espinosa is a recovery of the original investment, what assumption must the bank make to earn its desired 8 percent compounded annual return?
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Related Book For 
Fundamental Managerial Accounting Concepts
ISBN: 9780073526799
4th Edition
Authors: Thomas Edmonds, Bor-Yi Tsay, Philip Olds
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