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June Money is a business major at State U. She will be graduating this year and is planning to start a consulting business. She will need to purchase computer equipment that costs $35,000. She can borrow the money from the local bank but will have to make annual payments of principal and interest.
Required
a. Compute the annual payment June will be required to make on a $35,000, four-year, and 8 per cent loan.
b. If June can afford to make annual payments of $9,000, how much can she borrow?
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