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An individual wishes to borrow $10,000 for a year and is offered the following alternatives: A. A 10% loan discounted in advance B. An 11%

An individual wishes to borrow $10,000 for a year and is offered the following alternatives:

A. A 10% loan discounted in advance

B. An 11% straight loan (i.e., interest paid at maturity)

Which loan is more expensive?

*Please show all work. Thank you!)

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