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Q1 5 Points A person owes $500 due in 6 months and $1,000 due in 21 months. The lender agrees to allow the person to
Q1 5 Points A person owes $500 due in 6 months and $1,000 due in 21 months. The lender agrees to allow the person to pay off these two debts with a single payment. The money is worth at an annual constant force of interest rate 6%. Q1.1 3 Points What single payment in 12 months will pay off these obligations? Enter your answer here Q1.2 2 Points Recall that an annual constant force of interest is 6%. Calculate the equivalent annual nominal discount rate compounded quarterly. Enter your answer here
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