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Business, 09.12.2021 02:30, Alienhead6187
Paul lends $8,000 to Peter. Peter agrees to pay it back in ten annual installments at 7% with the first payment due in one year. After making four payments, Peter renegotiates to pay off the debt with four additional payments. The new payments are calculated so that Paul will get a 6.5% annual yield over the entire eight-year period. Determine how much money Peter saved by renegotiating.
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Paul lends $8,000 to Peter. Peter agrees to pay it back in ten annual installments at 7% with the fi...
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