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1. A loan of $50,000 has a stated interest rate of 4.5 percent per year. Repayment of principal and all accumulated interest is to be
1. A loan of $50,000 has a stated interest rate of 4.5 percent per year. Repayment of principal and all accumulated interest is to be made at the end of year 10.
. a) How much is paid at the end of the tenth year?
. b) How much simple interest is paid (excluding the interest accumulated on interest)?
. c) How much compound interest is paid (i.e., interest on interest)?
Answer using calculator and showing formula with procedure.
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