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Computing the Annual Debt Payments On September 1, Sault Inc. incurs a $120,000 debt....

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Accounting

Computing the Annual Debt Payments
On September 1, Sault Inc. incurs a $120,000 debt. Arrangements are made to pay this debt in three equal annual installments starting immediately at
compound interest of 10%.
a. Is this an ordinary annuity or an annuity due?
In answering the following questions, round your answer to the nearest whole number.
Do not use negative signs with your answers.
b. Compute the amount of the equal annual payments.
$
c. Compute the annual payment assuming the payments are made annually at the end of each annual period beginning on September 1, one year from
now.
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