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An amortized loan is repaid with annual payments which start at $400 at the end of the first year and increase by $45 each year

An amortized loan is repaid with annual payments which start at $400 at the end of the first year and increase by $45 each year until a payment of $1,48- is made, after which they cease. If interest is 4% effective, find the amount of principal in the fourteenth payment.

Solve by calculating outstanding balance after the 13th payment

Answer: $530.18

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