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A firm borrows $ 1 , 0 0 0 , and the loan is to be repaid in 3 equal payments at each of the

A firm borrows $

1, 000,

and the loan is to be repaid in

3

equal payments at each of the next

3

years with annual compounding. The lender charges a

5

percent annual interest rate on the loan. Calculate the annual payment and construct the amortization table for all three years.

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