If the loan provides the bank with a 12 percent return, Financial Management

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If the loan provides the bank with a 12 percent return

Columbia Bank & Trust has just given you a exist20,000 term loan to pay for a new concrete mixer. The loan requires payment of principal and interest at the end of the 5 years. If the loan provides the bank with a 12 percent return compounded annually, what will be your total loan payoff? What would your payoff be if the loan is compounded monthly.

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