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Mr. Flynn asks the bank to lend him Rs. 100 today for setting up a shop. He will not be able to pay anything in
Mr. Flynn asks the bank to lend him Rs. 100 today for setting up a shop. He will not be able to pay anything in the first year and will pay the entire loan amount due at the end of the second year.
Tenor
Borrowing/Lending Rates
1 yr
2%
2 yr
4.50%
What combination of products would enable Mr. Flynn to ascertain the amount that should be repaid at the end of 2 years?
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