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You have a loan of $1,000 to be repaid over the next 20 years. The loan is charged an effective annual interest rate of 6%. You are considering two methods of repayment. The methods are as follows: Equal payments every year Equal principal repayment with interest on the outstanding balance Calculate the difference in total cash outflow between the two methods.
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You have a loan of $1,000 to be repaid over the next 20 years. The loan is charged an effective annu...
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