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A loan is repaid in 20 equal annual payments starting one year from the time the loan was made. Suppose that the first interest payment (I1) is $7,877.50 and the 11th interest payment (I11) is $5,011.97.

(a) Find the effective annual interest rate.

(b) Find the amount of the annual payment.

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Financial Management, Finance

Category:- Financial Management
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