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Ber: Nurney borrows 10,000 and agrees to repay the loan over 10 years with interest at an annual effective rate of 8%. A loan payment
Ber: Nurney borrows 10,000 and agrees to repay the loan over 10 years with interest at an annual effective rate of 8%. A loan payment is to be made at the end of each year for 10 years. The payments are to be level for the first 5 years; then, in the 6th through 10th years, each payment will be twice as larg e as the payment amount during the first 5 years. (Thus the repayment schedule consists of 5 payments of P, followed by 5 payments of 2P.) 5 What is the outstanding balance of Bert's loan at the end of 8 years? In other words, how much does Bert still owe immediately after he makes the 8th loan payment? A) 1,892 B) 2,121 C) 3,131 D) 3,783 E) 4,243
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