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Amount of Loan

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A car is to be paid off with a custom-made loan. $6,000 one year from now, $7,000 two years from now, and $5,000 three years from now. If interest rates are 8% what is the amount of the loan?

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Solution Summary

The solution explains how to calculate the amount of loan given the repayment amounts.

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The amount of the loan is the present value of the payments. In order to find present value, we have to ...

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