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You are buying a machine for $120,000. You borrow all of the money from a bank at 13% interest over 5 years. The first year
You are buying a machine for $120,000. You borrow all of the money from a bank at 13% interest over 5 years. The first year sales will be slow; however over the next four years they will subsequently increase by 7% annually. The bank will accept payments on a balloon scale with each payment increasing by around 7% each year. What are the payments for each of the five years?
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