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Jiefei takes out a loan for $ 1 3 , 8 9 9 . 6 0 . The term of the loan is 8 years,
Jiefei takes out a loan for $ The term of the loan is years, and he will
make weekly payments. The interest rate on the loan is compounded bi
weekly.
a What is the effective interest rate per payment period?
b If Jiefei is going to repay the loan with level payments, what is the weekly
payment amount?
c Fill in the first rows of the loan amortization table.
d What would the nominal interest rate compounded biweekly have to be if the
weekly level payment amounts were $
e If instead of level payments, Jiefei repays the loan with the original interest rate
with level repayment of principal plus interest fill in the first rows of the
amortization table.
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