When the interest rate changes part way through a loan repayment, we must: calculate the interest for each period and add those amounts together at…

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When the interest rate changes part way through a loan repayment, we must: calculate the interest for each period and add those amounts together at the maturitydate. find an average of the interest rates for all calculations. calculate the interest for each period and immediately add those amounts to the principalbefore the next calculation. switch to using compound interest.

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