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Business, 02.10.2019 00:00 jacamron

This is a two part problem. part1: bill makes a loan to a neighbor of $15,000 (i. e., the principal of the loan is $15,000). the neighbor agrees to pay back the principal of the loan over 5 years in 5 equal payments at the end of each year. in addition, the neighbor agrees to pay 10% simple interest on the unpaid principal each year. what is the amount of each of the fivepayments the neighbor will make? part 2,suppose bill’s actual discount rate for money is 6%. what is the present value of the payments the neighbor will make to bill?

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This is a two part problem. part1: bill makes a loan to a neighbor of $15,000 (i. e., the principal...
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