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2.36 The initial balance of a loan is $20,000 and the in- terest rate is 1% per month (12% per year). A monthly payment of $2

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Answer #1

Loan balance at the beginning is $20,000

Loan repaid in beginning of the month would be $200

Balance left is $ 19,800

Interet for the month would be $19,800 * 1%= 198

Loan balance at the end of first month= $19,998

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