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$4,500 at 18% for 5 years Monthly payment $114.27 Amount of interest $2356.20 Suppose that you are only allowed to make a balloon payment to

$4,500 at 18% for 5 years

Monthly payment $114.27

Amount of interest $2356.20

Suppose that you are only allowed to make a balloon payment to the principal of the compound interest loan.

You have $1,000 to put down at the beginning of year

How many payments will you save?

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