A loan is being repaid by equal annual instalments

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A loan is being repaid by equal annual instalments at the end of each year for as long as necessary, plus a smaller final payment. The payment at the end of the first year is 12% of the original loan amount. Interest is at 4% per year, compounded annually. The principal repaid in the first instalment is $800. In which of the following rangers is the amount of interest included in the 8th instalment?

Reference no: EM13889542

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