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You have just taken out an installment loan for $100,000 at 24% annual interest rate. Assume that the loan will be repaid in 12 equal
You have just taken out an installment loan for $100,000 at 24% annual interest rate. Assume that the loan will be repaid in 12 equal monthly installments of $9,456 and that the first payment will be due 1 month from today. How much is the rate of interest? How much of your third monthly payment will go toward the repayment of principal?
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