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10. Your bank is offering you two sets of terms on a loan. You may borrow $10,000 today repayable in 3 years in a lump
10. Your bank is offering you two sets of terms on a loan. You may borrow $10,000 today repayable in 3 years in a lump sum of $20,000. Or you may borrow $10,000 today repayable in 1 year in a lump sum of $14,257. Interest is compounded monthly. Which loan term provides the lower interest cost
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