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Suppose Katherine takes a loan of $150,000 at 4.8% (12). a. If she wants to pay off the loan in ten years by paying $1200

Suppose Katherine takes a loan of $150,000 at 4.8% (12).

a.

If she wants to pay off the loan in ten years by paying $1200 every month and one last balloon payment, what is the size of balloon

payment? Use ordinary annuity to find it. Detail all steps.

b.Find the above balloon payment using annuity due. Detail all steps.

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