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    Amortizing loan with a fixed interest rate

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    Amortizing Loan. Consider a 4-year amortizing loan. You borrow $1,000 initially, and repay it in four equal annual year-end payments.

    a. If the interest rate is 8 percent, show that the annual payment is $301.92.

    Thank you.

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    The expert examines amortizing loans with a fixed interest rate.