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To purchase a new loader it is necessary to borrow $18,550. A vendor representative offers a...

To purchase a new loader it is necessary to borrow $18,550. A vendor representative offers a 10-yr loan at an interest rate of 5% compounded annually. If you make annual payments at the end of each yr, repaying the principal and interest, what is the total annuity (A/P) that must be paid back?
a)What is the number of time periods (n), rate of interest (i), per period of time, should be used in solving this problem?
b)Is the present single amount of money (P) known? (Yes, No)
c) Which time value factor should be used to solve this problem?

d)What is the value of annual payment?

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