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Problem:
Mr. Jones bought a building for $100,000, payable on the following terms: a $10,000 down payment and 20 equal annual installment payments to include principal and interest of 10 percent per annually.
a. Calculate the amount of the installment payments.
b. How much of the second year's payment will go toward the interest payment?
Summary of question:
This question basically belongs to Finance and it explains about calculation of equated annual installments for a loan which includes both the principal and interest.
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