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2. Moe obtains a loan at a nominal interest rate of 10% per annum. The loan is repayable in two annual equal payments of $50
2. Moe obtains a loan at a nominal interest rate of 10% per annum. The loan is repayable in two annual equal payments of $50 000 each at the end of year one and two. The present value of the loan is: Option 1) $86 776.86 Option 2) $82 644.63 Option 3) $132 231.40 Option 4) $90 909.09
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