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Given: A company borrows $6000 in December 2013 at a nominal annual interest rate of 5%. Find: 1.) Future single payment that must be made
Given: A company borrows $6000 in December 2013 at a nominal annual interest rate of 5%. Find: 1.) Future single payment that must be made in December 2019 to repay the entire principal? 2.) If the company chooses to make uniform annual payments instead (starting December 2014), what would be the value of such annual payments? Illustrate your answer with a cash flow diagram
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