What is the difference in the present value of these two loan alternatives? Assume the appropriate discount

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What is the difference in the present value of these two loan alternatives? Assume the appropriate discount rate is 6 percent.

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...
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