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17 April, 02:50

A loan of $12,500 at 9% is to be repaid with n level payments. if in = 128.04, what is the value of n?

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  1. 17 April, 02:52
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    present value of annuity = annual payment * [ 1 - (1+i) ^-n ]/i

    =>

    12500 = 128.04 * [1 - (1+9%/12^-n]/9%/12

    =>n = 42 payments
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