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29 May, 23:40

Javier took out a loan for $2700 at 12% interest, compounded annually. If he makes yearly payments of $320, will he ever pay off the loan?

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  1. 30 May, 03:00
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    He will never pay off the loan because it is increasing at 324 per year, for the first year and the interest will only increase which means 320 a year will not even make a dent in the loan
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