Vanderbilt afford to pay today for refinancing charges

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Reference no: EM131890994

Mrs. Vanderbilt presently owes a balance of $10,000 on a furniture loan that was originally negotiated at an interest rate of 8% per annum. A total of 20 equal annual payments remain to be made, with the first due in one year's time. If the loan can be refinanced at 6% per annum, how much can Mrs Vanderbilt afford to pay today for refinancing charges?

Reference no: EM131890994

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