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A Loan Is Repaid with Semi-Annual Payments of $4500 for 10

Question 2

Multiple Choice

A loan is repaid with semi-annual payments of $4500 for 10 years,first payment made six months from now.Interest on the loan is calculated at j1 = 12%.What is the loan amount if simple interest is calculated for the fractional part of an interest period? (Answer to nearest dollar. )


A) $50,852
B) $51,615
C) $52,334
D) $52,378

Correct Answer:

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