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gewusel gewusel
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Posts: 370
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6 years ago
The owner of the Guelph Inc. borrowed $20 000.00 at 1.2% compounded semi-annually and agreed to repay the loan by making payments of $1000.00 at the end of every three months.
a) How many payments will be needed to repay the loan?
b) How much will be owed at the end of five years?
Textbook 
Contemporary Business Mathematics with Canadian Applications

Contemporary Business Mathematics with Canadian Applications


Edition: 11th
Authors:
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Replies
wrote...
6 years ago
a)    P =  - 1 = 0.0029955134

   n =   =   =   20.6550349
   The number of payments is 21.

b)    PVg = 1000  = 1000(0.653415465) = 653.42
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