You borrow $12,000 from your local bank. The terms of the loan include an interest rate of 5.45%. The terms

Question:

You borrow $12,000 from your local bank. The terms of the loan include an interest rate of 5.45%. The terms stipulate that the principle is due in full one year after you graduate. Interest is to be paid annually at the end of each year. Assume that you complete college in four years.

How much will you pay the bank one year after you graduate?

Expert Answer:

Answer rating: 100% (QA)

The interest rate is 5 45 which means that each year you will need to pay 5 45

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