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A loan of $15,000 is to be repaid by level annual payments for 25 years, with the first payment to be made at the end
A loan of $15,000 is to be repaid by level annual payments for 25 years, with the first payment to be made at the end of the first year. The annual effective interest rate is 5%. Immediately after making the 15-th repayment, the borrower requests that the term of the loan be extended for an additional 5 years. The lender agrees provided the annual effective interest rate is revised to 6%, effective immediately Calculate the amount of the revised annual repayment. A) $800 B) $825 C) $850 D) $875 E) $900
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