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25-01-2024
Business

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Columbia Bank & Trust has just given you a $20,000 term loan to pay for a new concrete mixer. The loan requires 5 equal annual end of the year payments. If the loan provides the bank with a 12% return, what will be your annual payments?

a. $5,548
b. $3,148.12
c. $6,000
d. $1,666.67

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