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You have a loan of $1,000 to be repaid over the next 20 years. The loan is charged an effective annual interest rate of 6%.

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You have a loan of $1,000 to be repaid over the next 20 years. The loan is charged an effective annual interest rate of 6%. You are considering two methods of repayment. The methods are as follows: i. Equal payments every year ii. Equal principal repayment with interest on the outstanding balance Calculate the difference in total cash outflow between the two methods, less than 90 At least 90, but less than 100 At least 100, but less than 110 D At least 110, but less than 120 E 120 or more

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