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Bank of America offers you a $120,000, 5-year term loan at 6 percent annual interest. What will your annual loan payment...

Bank of America offers you a $120,000, 5-year term loan at 6 percent annual interest. What will your annual loan payment be?

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Answer #1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

Answer 3 Annual Loan Payment = Loan amount/ present value annuity (6%,5) 4 = 120000/((1-(1.06)^-5)/0.06) 5 = 120000/4.212364

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