Maria Espinosa borrowed $15,000 from the bank and agreed to repay the loan at 8 percent annual

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Maria Espinosa borrowed $15,000 from the bank and agreed to repay the loan at 8 percent annual interest over four years, making payments of $4,529 per year.

Because part of the bank’s payment from Ms. Espinosa is a recovery of the original investment, what assumption must the bank make to earn its desired 8 percent compounded annual return?

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Survey Of Accounting

ISBN: 9780077503956

3rd Edition

Authors: Bor Yi Tsay, Thomas Edmonds, Philip Olds, Frances Mcnair

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