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You are lending your friend $25,000. She agrees to repay the loan in equal quarterly payments over a three-year period at an interest rate of

You are lending your friend $25,000. She agrees to repay the loan in equal quarterly payments over a three-year period at an interest rate of 8% compounded quarterly.

Set up an amortization schedule for a $25,000 loan to be repaid in equal installments at the end of each quarter for the next 3 years.

How much interest will you earn over the life of the loan?

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