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A Loan of $25,000 Is to Be Repaid by Monthly

Question 23

Multiple Choice

A loan of $25,000 is to be repaid by monthly payments of $400. The interest rate is 9% compounded monthly. How many months will it take for the amount owing on the debt to be reduced to less than $10,000?


A) 57
B) 68
C) 74
D) 85
E) 92

Correct Answer:

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