Suppose you take a 10 year loan of $25,000 with an interest rate of 5% and annual payments starting at the end of year 1. What are the annual loan payments?

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Correct response: 3,237.611

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The loan payments are $3237.61 per year. Suppose you decide to pay off the loan at time 3. How much would you have to pay (including the time 3 payment), assuming there are no penalties for early repayment?

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