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Smith borrows $8,000 to be repaid over the next six years in equal monthly payments, the first one due one month hence. The nominal annual

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Smith borrows $8,000 to be repaid over the next six years in equal monthly payments, the first one due one month hence. The nominal annual rate of interest is 12% compounded monthly for the first two years and 18% compounded monthly thereafter. In which of the following ranges is the amount of each monthly payment? Possible Answers A

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