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28 July, 18:13

Javier took out a loan for $2700 at 12% interest, compounded annually. If he makes yearly payments of $320, will he ever pay off the loan?

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  1. 28 July, 18:40
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    He will never pay off the loan because it is increasing at 324 per year, for the first year and the interest will only increase which means 320 a year will not even make a dent in the loan
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