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Determine the amount of the annual payments

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Reference no: EM132715654

The company "gamusino, S.A.", contracted a loan with the National Bank under the following conditions:

Amount: $ 20,000

Term: 4 years

Payment method: interest is paid at the end of each year on unpaid balances and the loan amount at the end of the 4th. Year.

Annual interest rate: Treasury Bonds (TBILLS) 17.18%

Annual inflation rate: 32%

It asks:

1. Determine the amount of each of the annual payments

2. Determine the real interest rate

3. If they only pay real interest, how much would the annual payments be?

Reference no: EM132715654

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