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Problem 41.2 John borrows 10,000 from Tony and agrees to repay the loan with 10 equal annual installments of principal plus interest on the unpaid
Problem 41.2 John borrows 10,000 from Tony and agrees to repay the loan with 10 equal annual installments of principal plus interest on the unpaid balance at 5% effective. Immediately after the loan is made, Tony sells the loan to Chris for a price which is equal to the present value of John's future payments calculated at 4%. Calculate the price that Chris will pay for the loan
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