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Question - You borrow $70,000. The loan is structured as an amortized loan to be repaid over 8 years with 2 (end-of-period) payments per year. The lender is charging you a rate of 8% APR.
a. What are the amortized loan payments?
b. After two years you want to repay the remaining principal and end the loan. How much do you owe after two years?
c. After two years how much interest have you paid?
d. Today is the two-year anniversary of the start of the loan and you just made your loan payment. How much interest will be included in your next loan payment?
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