Question
The Omega Venture Group needs to borrow to finance a project. Repayment of the loan involves payments of $12,420 at the end of every for
The Omega Venture Group needs to borrow to finance a project. Repayment of the loan involves payments of $12,420 at the end of every for four years. No payments are to be made during the development period of nine years. Interest is 4% compounded . (a) How much should the Group borrow? (b) What amount will be repaid? (c) How much of that amount will be interest?
a) The Group should borrow $_______. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
b) The amount that will be repaid is $______. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
c) The amount of interest will be $__________. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) Enter your answer in each of the answer boxes.
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