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Q 2: You have borrowed $8000 from the bank. Suppose you want to repay a fixed amount of money for each of the following n
Q 2: You have borrowed $8000 from the bank. Suppose you want to repay a fixed amount of money for each of the following n years (except possibly the last year), and the annual interest rate r does not change in these n years. For example, if r = 10% and you repay $4000 each year, then you will own the bank $(8000+800-4000) = $4800 next year, $(4800+480-4000) = $1280 two years after, and at the end of the third year you only need to repay $(1280 + 128) = $1408. - (a) If r = 10% and you want to repay all the money in 10 years, how much do you need to pay each year? (b) If r = 20% and you want to repay all the money in 10 years, how much do you need to pay each year? (c) If r = 20% and you want to repay $2500 each year (except possibly the last year). How many years do you need to repay all the money? (d) If r = 24% and you want to repay $2000 each year (except possibly the last year). How many years do you need to repay all the money
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