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Sean Paul Borrowed $20 000

Question 39

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Sean Paul borrowed $20 000.00 from his father to finance his new business. The loan agreement calls for equal payments at the end of each month for 10 years. The payments are deferred for 4 years and interest is 4.00% compounded semi-annually. What is the size of the monthly payments?

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Balance in 4 years: i = 0.04 ÷ 2 = 0.02,...

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