Loan by reducing his remaining payment period

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Robert is repaying a debt with 21 annual end-of-the-year payments of $1300 each. At the end of the 4th year, he makes an extra payment of $2600. He then refinances his loan by reducing his remaining payment period by 2 years and making level payments over the remaining time. If the effective rate of interest is 7.9%, what is the amount of his new annual payment?

Reference no: EM131067480

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