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(2 points) (Exercise 5.33) A 16-year loan of $1600 is to be repaid with payment at the end of each year. It can be repaid
(2 points) (Exercise 5.33) A 16-year loan of $1600 is to be repaid with payment at the end of each year. It can be repaid under the following two options: ) Equal annual payments at an annual effective rate of 5%. (ii) Installments of $100 each year plus interest on the unpaid balance at an annual effective rate of i. The sum of the payments under Option() equals the sum of the payments under Option (i). Determine i. %. (2 points) (Exercise 5.33) A 16-year loan of $1600 is to be repaid with payment at the end of each year. It can be repaid under the following two options: ) Equal annual payments at an annual effective rate of 5%. (ii) Installments of $100 each year plus interest on the unpaid balance at an annual effective rate of i. The sum of the payments under Option() equals the sum of the payments under Option (i). Determine i. %
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