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A loan is being repaid with 10 payments of $20 followed by 10 payments of $10 at the end of each year. If the effective
A loan is being repaid with 10 payments of $20 followed by 10 payments of $10 at the end of each year. If the effective rate of interest is 5%, find the outstanding principal:
a. At t = 0, loan inception.
b. After 5 years using the prospective method or view.
c. After 5 years using the retrospective method or view.
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