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Columbia Bank & Trust Has Just Given You a $20,000

Question 50

Multiple Choice

Columbia Bank & Trust has just given you a $20,000 term loan to pay for a new concrete mixer.The loan requires five equal annual end of the year payments.If the loan provides the bank with a 12 percent return, what will be your annual payments?


A) $5,548
B) $3,148.12
C) $6,000
D) $1,666.67

Correct Answer:

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