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Brief Exercise 6-16 Henry Taylor is settling a $21.320 loan due today by making 6 equal annual payments of $4,752.65 Click he


Assignment CALCUL RCES Brief Exercise 6-16 Henry Taylor is settling a $21,320 loan due today by making 6 equal annual payment the first picture is blurry
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Answer #1
Present Value Of Annuity
= C*[1-(1+i)^-n]/i]
Where,
C= Cash Flow per period
i = interest rate per period
n=number of period
$21320= $4752.65[ 1-(1+i)^-6 /i]
i =0.09 i.e.9%
Interest rate = 9%
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