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Johnny has a loan for $50,000 at a rate of i(4) = 8% on which he makes quarterly payments of $2,000. In addition, Johnny
Johnny has a loan for $50,000 at a rate of i(4) = 8% on which he makes quarterly payments of $2,000. In addition, Johnny is depositing $500 a quarter into an account earning (4) = 4%. After how many periods will the account have enough money to repay the loan?
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We can calculate the accounts future value and compare it to the outstanding loan balance to determine how many periods it will take for the account to have sufficient funds to repay the loan Lets sol...
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Financial Accounting
Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M
5th Canadian edition
9781259105692, 978-1259103285
