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Using the prospective method or view

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A loan is being repaid with 10 payments of $20 followed by 10 payments of $10 at the end of each year. If the effective rate of interest is 5%, find the outstanding principal:

a. At t = 0, loan inception.

b. After 5 years using the prospective method or view.

c. After 5 years using the retrospective method or view.

Reference no: EM131915085

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