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Attached is question Grace Herron has just approached a venture capitalist for financing for her new business venture, the development of a local ski hill.

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Grace Herron has just approached a venture capitalist for financing for her new business venture, the development of a local ski hill. On July 1, 2013, Grace was loaned $291,000at an annual interest rate of7%. The loan is repayable over5years in annual installments of $70,972, principal and interest, due each June 30. The first payment is due June 30, 2014. Grace uses the effective-interest method for amortizing debt. Her ski hill company?s year-end will be June 30.

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