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Mia Salto wishes to determine how long it will take to repay a ?$17,000 loan given that the lender requires her to make annual? end-of-year installment payments of ?$3,095.
Problem a. If the interest rate on the loan is 12?%, how long will it take for her to repay the loan? fully?
Problem b. How long will it take if the interest rate is 9?%?
Problem c. How long will it take if she has to pay 15?% annual? interest?
Problem d. Reviewing your answers in parts a?, b?, and c?, describe the general relationship between the interest rate and the amount of time it will take Mia to repay the loan fully.
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1.On January 2, 2013, the Jackson Company purchased equipment to be used in its manufacturing process.
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