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Bob borrows 60,000, which he plans to pay back by level payments of 500 per month while being charged interest at an annual effective rate
Bob borrows 60,000, which he plans to pay back by level payments of 500 per month while being charged interest at an annual effective rate rate of 7%. Bob follows this plan until the outstanding balance of the loan is below 25,000, at which time he pays off the loan by increasing the size of his final payment. How many payments does Bob make, and how much did Bob pay in total in his final payment?
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