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u₁₂ represents the amount of loan remaining after 12 years
<h3>How to interpret u₁₂?</h3>The function is given as:
u₀ = 8000
Given that the subscript n in represents number of years and
represents the amount left to be paid after n years.
We can conclude that:
u₁₂ represents the amount of loan remaining after 12 years
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