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Jean recently bought a building for $10 million financed entirely through a 20-year bank loan. The interest rate on the loan is 3 percent per
Jean recently bought a building for $10 million financed entirely through a 20-year bank loan. The interest rate on the loan is 3 percent per year. After buying the building, Jean wins a $10 million lottery. Should Jean pay off the bank loan right away? Describe the decision qualitatively (using the concept of economic net benefit). No numerical calculations are necessary.
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