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Suppose that as a young small business entrepreneur you are signing for a 3-year, $10,000 loan at a government subsidized below-market interest rate of 3%
Suppose that as a young small business entrepreneur you are signing for a 3-year, $10,000 loan at a government subsidized below-market interest rate of 3% per year when current market interest for the loan from a bank will be 10%. What will be the cash value today of the government subsidized loan offer, if this loan has to be repaid as equal year-end payments over its 3-year term? NO FINANCIAL CALCULATOR
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