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If you borrow $7,000 with an interest rate of 3 percent, to be repaid in five...

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Finance

If you borrow $7,000 with an interest rate of 3 percent, to berepaid in five equal yearly payments at the end of the next fiveyears, what would be the amount of each payment? Use Exhibit 1-D.(Round time value factor to 3 decimal places and finalanswer to 2 decimal places.)

Amount of each paymet

Answer & Explanation Solved by verified expert
4.5 Ratings (848 Votes)
Amount of each payment is 152848 Calculation of Annual Installment Equated annual installment 1 Divided BY present value of annuity factor for 5 year at 3 ie 1 present value of annuity factor for 5 year at    See Answer
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