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An entrepreneur takes out a business loan for 60,000 with a nominal annual interest rate compounded monthly. The loan is scheduled to be paid off

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An entrepreneur takes out a business loan for 60,000 with a nominal annual interest rate compounded monthly. The loan is scheduled to be paid off with level monthly payments, plus a nal drop payment. All payments will be made at the end of the month. The principal portion of the payment is 1,400 for the first month and 1,414 for the second month. Calculate the drop payment. (A) 780 (B) 788 (C) 1 183 (D) 1676 (E) 1692

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