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    Exam 5: Time Value of Money
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    Rachel Takes Out a Seven-Year,8 Percent Loan with a Bank
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Rachel Takes Out a Seven-Year,8 Percent Loan with a Bank

Question 21

Question 21

Essay

Rachel takes out a seven-year,8 percent loan with a bank requiring annual end-of-year payments of $960.43.Calculate the original principal amount.

Correct Answer:

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PVA = (960...

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