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Consider a group of 100 people interested in borrowing a loan of $3000 for 10 years. The lender requires a single repayment amount of $3067
Consider a group of 100 people interested in borrowing a loan of $3000 for 10 years. The lender requires a single repayment amount of $3067 assuming there would be no default. Find the minimum repayment amount the lender should require at the end of 10 years if it is expected that 13 borrowers from this group will default but with 45% partial recovery
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