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Suppose You Choose to Pay Off a Loan Over 10

Question 8

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Suppose you choose to pay off a loan over 10 years instead of 5 years. The principal and interest rate are the same in both cases. Will the payment for the 10-year term be: (i) Half the payment for the 5-year term? (ii) More than half the payment? or (iii) Less than half the payment? Give the reasoning for your choice.

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The monthly payments will be (ii) more t...

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