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A bank is negotiating a loan. The loan can either be paid off as a lump sum of $120,000 at the end of five years,
A bank is negotiating a loan. The loan can either be paid off as a lump sum of
$120,000
at the end of
five
years, or as equal annual payments at the end of each of the next
five
years. If the interest rate on the loan is
8%,
what annual payments should be made so that both forms of payment are equivalent?
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A Financial Crisis Manual Reflections And The Road Ahead
Authors: Dimitrios D. Thomakos , Platon Monokroussos, Konstantinos I. Nikolopoulos
1st Edition
