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Mr. Davis bought a life insurance policy 10 years ago and has a cash value of $500,000. Mr. Davis would like to borrow $100,000 of
Mr. Davis bought a life insurance policy 10 years ago and has a cash value of $500,000. Mr. Davis would like to borrow $100,000 of his money then pay it back with a 15 end of year payments at an annual rate of 8% compounded quarterly. What effective rate will Mr. Davis be paying and how much will his payments be? Use formulas and solve by hand please. NO EXCEL. Answer: 8.24%, $11,857.03
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