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18)You are borrowing $150,000 on a 5 year, 4.5% add-on interest loan. What will your payments...

18)You are borrowing $150,000 on a 5 year, 4.5% add-on interest loan. What will your payments be?

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Answer #1

CASE 1: ANNUAL PAYMENTS
=(150000+150000*4.5%*5)/5
=36750

CASE 2: MONTHLY PAYMENTS
=(150000+150000*4.5%*5)/(12*5)
=3062.5

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