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2. An enthusiastic engineering graduate plans to start a consulting firm by borrowing $100,000 at 10% per year interest. What loan in 7 years? Draw
2. An enthusiastic engineering graduate plans to start a consulting firm by borrowing $100,000 at 10% per year interest. What loan in 7 years? Draw the cash flow diagram. The graduate changes his mind and decides to pay off his loan aggressively. So, he plans to pay an amount of $25,045 per year (instead of the amount calculated above (in problem 2a)) for 5 years only for the same loan amount of $100,000 that he has borrowed. What would be the interest rate that he would then be paying? Draw the cash flow diagram. a. would be the loan payment each year if the graduate plans to pay off the (4+1 pts) b. (4+1 pts)
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