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Suppose that you borrow $30,000 at 15% compounded monthly over four years. Knowing that the 15% represents the market interest rate, you realize that the
Suppose that you borrow $30,000 at 15% compounded monthly over four years. Knowing that the 15% represents the market interest rate, you realize that the monthly payment in actual dollars will be $834.92. If the average monthly general inflation rate is expected to be 0.8%, determine the equivalent equal monthly payment series in constant dollars.
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