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Avishek has an interest only loan for $100,000.00 maturing in 9 years. The interest rate on the loan is 4.750% compounded daily. He will repay
Avishek has an interest only loan for $100,000.00 maturing in 9 years. The interest rate on the loan is 4.750% compounded daily. He will repay the loan by making quarterly interest only payments, and by also making quarterly deposits of $2,319.62 into a sinking fund paying r(26) = 4.000%. If he defaults just after making 13 loan payments, and the lender gets the balance in the sinking fund, how much money is the lender's net loss? a. $67,279.74. b. $61,842.99. c. $72,716.48. d. $74,075.67. e. $67,959.33..
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