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Solve each of the following three problems, all of which involve borrowing money from a bank with an APR of 6.5%

compounded annually. Look carefully at how the problems differ from one another, in spite of appearing similar. In your solutions, say a few words explaining how you can tell which is the appropriate formula to apply in each case.

Top Answer

1: This is future value of annuity due since the borrowing begins immediately and we have to calculate the total debt... View the full answer

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