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Posted on Sep 02, 2024

You expect to pay $250 each quarter for the next 5 years to pay off a loan. The interest rate on the loan is 10%,

You expect to pay $250 each quarter for the next 5 years to pay off a loan. The interest rate on

the loan is 10%, compounded quarterly:

a. What is the value today of these cash flows?

b. How much money can you borrow?

c. What is the value in 3 years of the remaining cash flows?

d. How much money do you still owe after 3 years?

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