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A company borrows 400,000 from a bank: this loan will be paid back over the next 20 years, with the agreed loan interest rate of
A company borrows 400,000 from a bank: this loan will be paid back over the next 20 years, with the agreed loan interest rate of 8% per year. The loan agreement requires the company to pay constant amount of money each year. More specifically, the repayment will occur once per year, at the end of given year. Right now is end of year 0. What will be the annual interest payment scheduled at the end of year 4? A. Smaller than or equal to 27,015 B. 27,988 C. 28,852 D. 29,730 E. Larger than or equal to 30,624
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