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I borrow 2000 at an effective rate of interest of 10% per annum and agrees to repay the loan with payments at the end of
I borrow 2000 at an effective rate of interest of 10% per annum and agrees to repay the loan with payments at the end of each year. The first payment is to be 400 and each payment thereafter is to be 4% greater than the preceding payment, with a smaller final payment made one year after the last regular payment. a) Find the outstanding loan balance at the end of 3 years. b) Find the principal repaid in the third payment. c) Find the interest repaid in the fourth payment.
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