Chapter $7$

Financial Planning Exercise $4$

Calculating single payment loan amount due at maturity

Chase Boyd plans to borrow $$6,000$ for $5$ years. The loan will be repaid with a single payment after five years, and the interest on the loan will be computed using the simple interest method at an annual rate of $8$ percent.

How much will Chase have to pay in five years?

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How much will he have to pay at maturity if he's required to make annual interest payments at the end of each year?