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Amount of Loan

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?

Solution Preview

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

Solution Summary

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