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Ron is repaying a loan with payments of 1 at the end of each year for n years. The annual effective interest rate on

 

Ron is repaying a loan with payments of 1 at the end of each year for n years. The annual effective interest rate on the loan is i. The amount of interest paid in year t plus the amount of principal repaid in year t+1 equals X. Determine which of the following is equal to X. (A) 1+- (B) 1+ (C) 1+vi (D) 1+vd (E) 1+v

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Answer To determine the expression for X lets break down the loan repayment process In year t the am... blur-text-image

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