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A borrower is repaying a loan of 400,000 at effective annual rate 4.3% with 32 annual payments, each containing an equal amount of principal. The
A borrower is repaying a loan of 400,000 at effective annual rate 4.3% with 32 annual payments, each containing an equal amount of principal. The amount of interest in the 14th payment (to the nearest dollar) is: a) 9,675 b) 10,213 c) 10,750 d) 11,288 e) 12,798 A perpetuity consists of quarterly payments. The first 4 quarterly payments are equal to 100, with first paid 2 years in the future. Thereafter, each payment is 1% larger than the payment 1 year prior. If i(4) = 6%, compute the present value of this perpetuity. a 7,176 b) 8,084 C) 13,784 d) 18,021 e) 20,300
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