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How much will you owe at the end of four years

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Problem 1: Housing prices vary a great deal if you save $2,000.00 a year by renting a cheaper place and borrowed $8,000.00 a year for 4 years with deferred interest at 7% compounded annually. How much will you owe at the end of 4 years?

Problem 2: How long will it take you to pay off this loan at $3,600.00 per year if the interest rate continues to be 7% compounded annually?

Reference no: EM132743868

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