Question
You want to borrow $600,000 from your bank to buy a business. The loan has an annual interest rate of 8% and calls for equal
You want to borrow $600,000 from your bank to buy a business. The loan has an annual interest rate of 8% and calls for equal annual payments over 10 years (starting one year from now), after which the loan is paid back in full.
1. What is the annual payment you have to make?
You took out some student loans in college and now owe $12,000. You consolidated the loans into one amortizing loan, which has an annual interest rate of 6% (APR).
2. If you make monthly payments of $200, how many months will it take to pay off the loan? Fractional values are acceptable.
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