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Suppose that for a next stage of an important avenue Ch$3,520 million are needed, of which: 30% would be provided by the Ministry of Public

Suppose that for a next stage of an important avenue Ch$3,520 million are needed, of which: 30% would be provided by the Ministry of Public Works, 35% would be financed by the Regional Government, 10% would be municipal contributions and the rest would be financed with a loan that would charge an annual interest rate of 12.48% capitalizable by bimonthly installments. a) How many bimonthly installments of $59,000,000 would the loan be amortized? b) How much should the monthly savings anticipated by the municipality be? During the 4 years prior to the construction of this phase, if it could earn the same interest rate as the loan? Assume that the $3.520 million is needed at the beginning of construction.

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