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Question 2 5 pts You are a credit manager for Second Bank of Terlingua. Your bank is considering a loan to Arti Choke, a property
Question 2 5 pts You are a credit manager for Second Bank of Terlingua. Your bank is considering a loan to Arti Choke, a property developer in Terlingua. The structure of the loan is such that Arti would agree to pay back $20 million per year for 10 years, with the first payment in one year. Given the risk of Arti's company, you think that the appropriate interest rate should be 20% per year, compounded annually. Given this rate and the structure of the loan, how much should your bank lend to Arti? Do not round at intermediate steps in your calculation. Report your answer in approximate millions of dollars. O $84 million O $200 million O $160 million $112 million
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