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10. On January 1, 2005, Michael has the following two options for repaying a loan: (i) Sixty monthly payments of 100 beginning February 1, 2005.
10. On January 1, 2005, Michael has the following two options for repaying a loan: (i) Sixty monthly payments of 100 beginning February 1, 2005. (ii) A single payment of 6,000 at the end of K months. Interest is at a nominal annual rate of 12% compounded monthly. The two options have the same present value. Determine K. A. 32 B. 31
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