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Calculate the total annual loan payment

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Question - Loan payments and interest Just Water International Ltd. wants to purchase water purification equipment costing $250,000. The full amount needed to finance the asset can be borrowed at an interest rate of 12.5%. The terms of the loan require equal end-of-year payments for the next 5 years. Calculate the total annual loan payment, and break it into the amount of interest and the amount of principal paid for each year.

Reference no: EM132745304

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