Vince loaned a certain amount from a cooperative and promised to pay it back with 2.26 times his original loaned amount. They agreed a nominal interest rate of 9.03 % compounded every 4 months every year for n years. How many n years before he pay all his loan with interest? Answer rounded off with two 2 decimal places.
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Step 1: Use the general growth formula \(P_n = P_0(1 + \frac{r}{100})^n\), where \(P_n\) is the amount paid back, \(P_0\) is the original loan amount, \(r\) is the interest rate per period, and \(n\) is the number of periods. Show more…
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