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Peter is considering making a loan of $500,000 to Paul. It is a three-year loan with annual payments due at the end of each year
Peter is considering making a loan of $500,000 to Paul. It is a three-year loan with annual payments due at the end of each year and a 7% annual interest rate. Find the payments that would be required to amortize the loan over the three-year period and then prepare an amortization schedule to demonstrate how the loan will be fully paid off in three years.
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