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Ann established a home equity line of credit. The interest rate is recalculated at the beginning of each year at prime +1% convertible monthly. Ann
Ann established a home equity line of credit. The interest rate is recalculated at the beginning of each year at prime +1% convertible monthly. Ann withdrew $2,000 on 1/1/90 and began making payments of $100 every month starting on 2/1/90. The prime rate increased from 11% on 1/1/90 to 12% on 1/1/91. Inmmediately after making her payment on 4/1/91, Ann withdrew an additional $4,000. Her payments remained at $100 per month. What was the amount of principal, P, in her next payment on 5/1/91
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