You borrow $120,000 at 6.00% per year and will pay off the loan in equal payments starting one year after the loan is made over a period of ten years. What are the annual end-of-year payments?  Determine the amount of interest and principal that are paid each year.  What is the total interest paid for the loan?

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Chapter6: Saving And Investing
Section6.1: Why Save?
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  1. You borrow $120,000 at 6.00% per year and will pay off the loan in equal payments starting one year after the loan is made over a period of ten years. What are the annual end-of-year payments?  Determine the amount of interest and principal that are paid each year.  What is the total interest paid for the loan?
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