Question:

Interest and interest factors?

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four years ago a person borrowed $10000 at an interest rate of 8% compounded annually and agreed to pay it back in equal payments over ten year period. this same person now wants to pay off the remaining amount of the loan. how much should this person pay? assume he has just made the fourth payment.

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  1. It is 1490.29 per payment

    you have 6 payments after the 4th thus the answer is 6889.45

    email me or im me if you need the equations or to know how i did it.  I just had engineering economics and this is an easy problem for me.

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