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On the calculator: Ex. Finding the Interest Rate: Suppose you borrow $10,000 from your parents to buy a car. You agree to pay $207.58 per month for 5 years. ... Consider a 4-year loan with annual payments. The interest rate is 8% and the principal amount is $5,000. What is the annual payment? Use formula for PV of annuity. $5,000 = C[1 – 1 ... ................
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