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Please do not use excel A loan L is repaid using increasing payments. The first payment, made at t = 1, is of amount 200,
Please do not use excel
A loan L is repaid using increasing payments. The first payment, made at t = 1, is of amount 200, and each subsequent payment increases by a factor of (1.55), with the last payment at t = 20. However, at t = 10, the borrower decides to make an additional payment of X, which allow him to halve the size of the remaining payments (t = 11,..., 20). Determine L and X if the effective interest is 8%Step by Step Solution
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