Equal principal payments are made on a loan of 1000 for 10, Financial Management

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Equal principal payments are made on a loan of 1000 for 10

Equal principal payments are made on a loan of $1000 for 10 years. Interest is paid at the rate of 10% on the outstanding principal. The lender invests the payments (interest + principal) in a fund earning 5% interest. What yield rate does the investor realize?

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Financial Management: Equal principal payments are made on a loan of 1000 for 10

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