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A firm borrows $100,000 under a 3 year agreement at 12% interest. The loan requires annual payments of $25,000 at the end of years 1

A firm borrows $100,000 under a 3 year agreement at 12% interest. The loan requires annual payments of $25,000 at the end of years 1 and 2. What is the payment required at the end of year three with this balloon loan?

a) $33,333

b) $81,133

c) $72,440

d) $131,133

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