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You purchased a machine for your plant and the contract calls for equal payments of $25,000 in 12 months and 24 months. Your cash flow
You purchased a machine for your plant and the contract calls for equal payments of $25,000 in 12 months and 24 months. Your cash flow is better than you projected so you would like to repay the loan early by making two equal payments, one today and one in six months time. Find the size of the payments. The interest rate charged is 10% compounded semi-annually. Suggested focal date: 6 months from now
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