Homework Answers
Solution:
Total loan amount after 8 years = $34,000 * (1+0.09)^8 = $34,000*1.992563 = $67,747.13
Annual payments = $67,747.13 / Cumulative PV factor at 12% for 16 periods
= $67,747.13 / 6.973986
= $9,714.26
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