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Determining the second payment

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Suppose you borrowed $7,500 at a rate of 4% and must repay it in 3 equal installments at the end of each of the next 3 years. How much would you still owe at the end of the second year, after you have made the second payment?

a. $2,233.50

b. $2,598.67

c. $2,855.33

d. $3,000.00

e. $3,225.22

Reference no: EM132003167

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