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Question 2. (20 points) Assume that you borrowed $90,000 from a bank at an interest rate 15% compounded annually. You want to pay the loan
Question 2. (20 points) Assume that you borrowed $90,000 from a bank at an interest rate 15% compounded annually. You want to pay the loan back in 17 years. The bank offers you 4 different repayment options. Option 1: Pay the loan in a single payment of the amount F at the end of year 17 . Option 2: Pay nothing for 5 years and pay an equal amount of A after that at the end of each odd year until the end of year 17. (Payments occur at the end of years 7, 9, 11, 13, 15 and 17.) Option 3: Pay an amount G at the end of the first year and increase the annual payments by G every year until the end of year 17. Option 4: Pay an amount A1 at the end of the first year and then pay 80% of the previous year's payment at the end of each year until the end of year 17 . a) (5 points) Find the value of F. b) (5 points) Find the value of A. c) (5 points) Find the value of G. d) (5 points) Find the value of A1
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