What will happen if the first payment is due today

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Reference no: EM131386645

Consider a situation in which you borrow 5000$. You will repay the loan in five equal ends of year payments. The first payment is due one year from now. Interest rate is 8% compounding annually.

a) What is the size of each of the five payments?

b) What will happen if the first payment is due today?

Reference no: EM131386645

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