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A Loan of $P Is Taken Out

Question 17

Multiple Choice

A loan of $P is taken out.It is to be repaid with a payment of $2000 in 2 months,$50 in 6 months and a final payment due in 10 months.If the merchant's rule is used,the final payment turns out to be $3000.If the rate of simple interest on the loan is r = 12%,what is P?


A) $4733.51
B) $4735.23
C) $4736.36
D) $4738.18

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