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Gavin Collins plans to borrow $8,000 for five years. The loan will be repaid with a single payment after 5 years, and the interest on
Gavin Collins plans to borrow $8,000 for five years. The loan will be repaid with a single payment after 5 years, and the interest on the loan will be computed using the simple interest method at an annual rate of 6 percent. How much will Gavin have to pay in five years? How much will he have to pay a maturity if hes required to make annual interest payment at the end each year?
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