1) Let's assume that a loan of $100,000 with an annual interest rate of 6%...
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Accounting
1) Let's assume that a loan of $100,000 with an annual interest rate of 6% over 30 years pays monthly payments of $500.
a. Calculate the accumulation rate (5 points)
b. Calculate the payment rate (5 points).
c. Answer (5 points): How will the principal balance be at the end of the loan in relation to the original amount of the loan? Less than, equal to or more?
Provide calculations.
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