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Posted on Sep 30, 2024

Suppose that you need to borrow $2000 from your local bank, which offers a discount rate of 7 % if you pay off your loan

Suppose that you need to borrow $2000 from your local bank, which offers a discount rate of 7 % if you pay off your loan in 2 years. Answer the following six questions:

Find the interest rate (r) which is comparable to the discount rate (d) of 7 % when the term is 2 years.

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