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Show all working please and thanks You work for a bank and want to earn 6% on a pool of $20,000 1-year interest-only loans of

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Show all working please and thanks

You work for a bank and want to earn 6% on a pool of $20,000 1-year interest-only loans of which you anticipate 10% of the borrowers will not pay you anything. What interest rate do you have to charge all borrowers in order to earn your targeted 6% return considering some will default

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