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Quarterly Payments of $3,000 Are Required on an $80,000 Loan

Question 26

Essay

Quarterly payments of $3,000 are required on an $80,000 loan at 8.0% compounded quarterly.
a) Calculate the interest component of Payment 30.
b) Calculate the principal component of Payment 9.
c) Calculate the final payment.

Correct Answer:

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a) $513.82...

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