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Kobe has an interest only loan for $100,000.00 maturing in 6 years. The interest rate on the loan is 3.750% compounded quarterly. He will repay
Kobe has an interest only loan for $100,000.00 maturing in 6 years. The interest rate on the loan is 3.750% compounded quarterly. He will repay the loan by making annual interest only payments, and by also making annual deposits of $13,457.73 into a sinking fund paying r4) = 8.250%. If he defaults just after making 4 loan payments, and the lender gets the balance in the sinking fund, how much money does the lender lose? O a. $45,902.62. O b. $49,792.67 O c. $49,403.67. O d. $38,900.53. O e $48,236.65
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