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You need some money today and one of your friend agrees to loan you the money you need only if you make payments of $100
You need some money today and one of your friend agrees to loan you the money you need only if you make payments of $100 a month for the next eight months. In addition, he requires that the first payment be paid today. He will charge you 18% annual interest rate with monthly compounding. How much money are you borrowing today?
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