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A friend needs money, so he asks you for a loan of $1000 and offers to pay you back at the rate of $90 per
A friend needs money, so he asks you for a loan of $1000 and offers to pay you back at the rate of $90 per month for 12 months. Using an annual rate of 9% what would be the monthly rate as a percent? (Give two decimals) Using an annual rate of 9% what is the net present value to you? (Give as dollars and cents. That is to two decimal places) | Are you actually earning your 9% annually or more on this loan? (yes or no) What would your net present value be using a rate of return of 15% annually on your loan. (Two decimals) Are you actually earning 15% annually or more on this loan? (yes or no)
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