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A $1000 Loan Is Being Paid Off with Annual Payments

Question 45

Multiple Choice

A $1000 loan is being paid off with annual payments of $100 at the end of each year for as long as necessary,with the final $100 payment increased by a balloon payment.If j1 = 3.5%,what is the size of the balloon payment?


A) $30.27
B) $33.67
C) $50.87
D) $52.66

Correct Answer:

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