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A loan is repaid by the same fixed repayment amount each year. The repayment includes both interest and principal (with the interest component reducing each
A loan is repaid by the same fixed repayment amount each year. The repayment includes both interest and principal (with the interest component reducing each year and the principal component increasing each year until all the principal is repaid.) Based on the information in the table, determine the value of the principal repayment at the end of year three. Loan principal = $10,000.i=6%/yr, N=3 yr. EOY K REPAYMENT Interest REPAYMENT Principal Component Component $600 2 $411.54 $3,329.46 3 ? ? C$1,188 C$3,529.54 $1,250 $1,175 C$1,150
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