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My Nates Kathy can take out a loan of $50,000 with Bank A or Bank B. With Bank A, she must repay the loan with
My Nates Kathy can take out a loan of $50,000 with Bank A or Bank B. With Bank A, she must repay the loan with 60 monthly payments using the amortization method with interest at 8% compounded monthly. With Bank B, she can repay the loan with 60 monthly payments using the sinking fund method. The sinking fund will earn 7.5 % compounded monthly. What nominal annual interest rate compounded monthly can Bank B charge on the loan so that Kathy's payment will be the same under either option? Answer 4.50 x % (in percents rounded to 2 decimal places.) 1/1 points i Prm um Anewen
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