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Jones Co Borrowed Money That Is to Be Repaid in 12

Question 29

Multiple Choice

Jones Co. borrowed money that is to be repaid in 12 years. So that the loan will be paid back at end of the 12th year, the company invests $8,000 at end of each year at 5% compounded annually. The amount of the original loan was


A) $127,337.01
B) $70,905.60
C) $127,636.80
D) $70,950.60
E) None of these

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