When must you use trial and error techniques

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1. What is the relationship between the variables in a loan amortization calculation and the total interest cost? Consider the variables of interest rates amount borrowed, down payment, prepayment, and term of loan in answering this question.

2. Why is it so difficult to find unknown interest or growth rates and numbers of periods when all other variables are known? When must you use trial-and-error techniques?

Reference no: EM131334448

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