Chapter 1, Section 4
The interest rate on the loan is an annual effective rate of 6%. The loan was originated 4 years ago. Payments of 500 at the end of the first year, 750 at the end of the second year, 1000 at the end of the third year and 1250 at the end of the fourth year have been paid. Calculate the outstanding balance immediately after the fourth payment. ................
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