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OpenStudy (anonymous):
1.) Your friend wants to borrow $1,137.45 from you to pay off a credit card that charges a 14.7% APR. You agree to the loan but require your friend to pay you interest of 3.6% APR on the loan and your friend agrees. Step a.) If your friend pays you $200.00 at the end of the first month, how much goes toward the principal? Step b.) How much interest does your friend save compared to the credit card at the end of the first month?
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