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Mr. Sullivan is borrowing $2 million to expand his business. The loan will be for 10 years at 12% on the declining balance, and will
Mr. Sullivan is borrowing $2 million to expand his business. The loan will be for 10 years at 12% on the declining balance, and will be repaid in equal quarterly installments. What will the quarterly payments be? At the end of the first year, how much interest will Mr. Sullivan have paid? By how much will he have reduced the principal?
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