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A bank offers you a $ 1 M loan with an IRR of 3 % . ( Recall from class that in this case you

A bank offers you a $

1

M loan with an IRR of

3 % . (

Recall from class that in this case you

can interpret the IRR as a

borrowing rate

.)

The bank asks you to repay the loan in

8

equal annual installments.

(

)

What is the annual repayment on the loan?

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