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( c ) A lender loans a borrower 1 0 0 , 0 0 0 at an effective monthly interest rate of 1 % .

(c) A lender loans a borrower 100,000 at an effective monthly interest rate of 1%. The borrower will pay interest each month, and pay the principal at the end of 30 years. Payments will be reinvested in a savings account of (12)=6%.
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