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What assumption must the bank make to earn annual return

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Question - Mary Blake borrowed $15,000 from the bank and agreed to repay the loan at 8 percent annual interest over four years, making payments of $4,529 per year. Because part of the bank's payment from Ms. Blake is a recovery of the original investment, what assumption must the bank make to earn its desired 8 percent compounded annual return?

Reference no: EM132341909

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