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A declining-balance loan for $3000 entails paying about $275.00 for each of twelve months, for a total of about $3300 in payments. The loan's interest rate is 18% per year. How much of the loan's second payment goes to paying interest? O $41.55 O $40.88 O $45 $36.75

A declining-balance loan for $3000 entails paying about $275.00 for each of twelve months, for a total of about $3300 in payments. The loan's interest rate is 18% per year. How much of the loan's second payment goes to paying interest? O $41.55 O $40.88 O $45 $36.75

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A declining-balance loan for $3000 entails paying about $275.00 for each of twelve months, for a total of about $3300 in payments. The loan's interest rate is 18% per year. How much of the loan's second payment goes to paying interest? $41.55 O $40.88 O $45 O $36.75 O $42.58
Transcribed Image Text:A declining-balance loan for $3000 entails paying about $275.00 for each of twelve months, for a total of about $3300 in payments. The loan's interest rate is 18% per year. How much of the loan's second payment goes to paying interest? $41.55 O $40.88 O $45 O $36.75 O $42.58
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