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Number of payments per period

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Reference no: EM131205944

When you increase the number of payments per period, why does the total cash payment times the number of payments in the period not equal the original single payment for the period? (In other words, why does twelve times a monthly payment on a loan with a positive interest rate not equal the required annual payment on the same loan amount with the same interest rate?

Reference no: EM131205944

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