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9) You have 2 options to pay off a $100,000 loan and both options have an interest rate of 5% compounded quarterly. Option A will
9) You have 2 options to pay off a $100,000 loan and both options have an interest rate of 5% compounded quarterly. Option A will repay the loan with monthly payments (end) over 15 years and Option B will repay it with beginning of the year payments over 20 years. (5 marks) a. Find the size of the monthly payments over 15 years (2) b. Find the size of the beginning of the year payments required over 20 years (2) c. How much interest (in dollars) is saved with the monthly payments over 15 years versus the year payments over 20 years? (1)
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