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Up-Front Bank is now offering a two-year discount loan for 10.4 %. Working backwards, what are the available funds at the start of the loan

Up-Front Bank is now offering a two-year discount loan for 10.4 %. Working backwards, what are the available funds at the start of the loan and the implied balance at the end of the first year if the total lump-sum repayment at the end of the second year is $385,000? What is the EAR of this loan?

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