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(b) You've just borrowed $200,000 from the bank. Exactly ten years from today, you need to pay back the $200,000 loan plus interest. The nominal

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(b) You've just borrowed $200,000 from the bank. Exactly ten years from today, you need to pay back the $200,000 loan plus interest. The nominal interest rate is 14% and there is monthly compounding. How much will you pay back ten years from today? Hint: calculate the EAR, and then use your calculator or Excel just as you normally would. EAR: (1+0.14/12)41=14.9%

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