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You are taking out an $11,000 loan today at 7% compounded annually. You will pay back the loan with 6 equal end-of-year payments. How much

You are taking out an $11,000 loan today at 7% compounded annually. You will pay back the loan with 6 equal end-of-year payments.

How much interest will you owe in the third year?

How much will you owe the bank at the end of the third year?

Show necessary formulas to find equal payment, principal payment, and interest payments.

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