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At an effective annual rate of interest i, a person can pay off a loan of K in two ways: (1) 475 now and 475
At an effective annual rate of interest i, a person can pay off a loan of K in two ways: (1) 475 now and 475 in 1 year, or (2) 570 in 2 years and 570 in 3 years. Calculate K. (A) 893 (B) 901 (C) 909 (D) 917 (E) 925 For an unknown interest rate i, the following payments have the same present value: (a) 675 at the end of two years. (b) 200 at the end of one year and 500 at the end of three years. Find the value of (Assume i
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