Using the simple interest method at an annual rate

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Gavin Collins plans to borrow $8,000 for five years. The loan will be repaid with a single payment after five years, and the interest on the loan will be computed using the simple interest method at an annual rate of 6 percent. How much will Gavin have to pay in five years? How much will he have to pay at a maturity if he's required to make annual interest payments at the end of each year?

Reference no: EM131317991

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