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Suppose that you need to take out a loan today, and anticipate being able to pay back $24,000 ten years from now. If the APR
Suppose that you need to take out a loan today, and anticipate being able to pay back $24,000 ten years from now. If the APR is 8% compounded monthly, a) (4 points) how much can you afford to borrow now? b) (2 points) by what overall percentage does the account grow over the course of the 10 years? c) (4 points) find the APY. Then, state specifically what the APY represents.
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