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XY Business has the following two options: Option 1: a ten-year $100,000 loan bearing a 10% interest charge; or Option 2: a 20-year $100,000 loan
XY Business has the following two options: Option 1: a ten-year $100,000 loan bearing a 10% interest charge; or Option 2: a 20-year $100,000 loan bearing a 10% interest charge. For Option 1, determine: (a) The annual loan payment amount. ( 2 marks) (b) The amount of principal paid over the ten-year period. (1 mark) (c) The amount of interest paid over the ten-year period. (1 mark) For Option 2, determine: (d) The annual loan payment amount. ( 2 marks) (e) The amount of principal paid over the 20-year period. (1 mark)
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