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4 . A loan of amount L is to be repaid at an effective annual interest rate of 8 % with payments at the end
A loan of amount L is to be repaid at an effective annual interest rate of with payments at the end of each year, starting one year after the loan. It can be repaid under the following three options :
i equal annual payments of K each.
ii Installments of Y each year for years plus interest on the unpaid balance.
iii Annual payments of K each plus a final smaller payment of Z one year after the last regular payment where K is the same as in i
If the total amount of interest of is paid on the loan under option ii calculate K and for option iii find the total number of payments and the amount Z
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