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Amortization. Loan Consolidated Incorporated (LCI) is offering a special one-time package to reduce Custom Autos' outstanding bills to one easy-to-handle payment plan. LCI will pay
Amortization. Loan Consolidated Incorporated (LCI) is offering a special one-time package to reduce Custom Autos' outstanding bills to one easy-to-handle payment plan. LCI will pay off the current outstanding bills of $242,000 for Custom Autos if Custom Autos will make an annual payment to LCI at an interest rate of 10% over the next 15 years. a. What are the annual payments of the loan? b. What is the amortization schedule for this loan if Custom Autos wants to pay off the loan before the loan maturity in 15 years? c. When will the balance be half paid off? d. What is the total interest expense on the loan over the 15 years
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