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A $10,000 loan with interest at 5% per year, compounded annually, is scheduled to be repaid in fifteen equal annual installments, the first payment after one year. At the end of year 2, the borrower makes an additional payment of $1,000. Level annual installments in the original amount are continued until a final partial payment will liquidate the loan.
Problem 1: Find ranges is the amount of the final payment?
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Kimbo Corporation, What are the journal entries that Kimbo Corporation would make relating to the sale of the widgets and their warranty?
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