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Time Value of Money - calculating repayment period

I acquired an additional business unit for $310000. The seller agreed to accept annual payments of $67000 at an interest rate of 6.5 percent. How many years will it take me to pay for this purchase?

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The PV of annual payments should be equal to the loan amount. So equate the ...

Solution Summary

Illustrates the concepts of time value of money.

$2.19