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Problem:

Currently, the bank is providing one-year discount loans at 7.9%. What is the effective annual rate on these loans? If you were required to repay $250,000 at the end of the loan for one year, how much would the bank give you on your loan at the start of te loan?

If you were required to repay $250,000 at the end of the loan for one year, how much would the bank give you on your loan at the start of the loan? (round to the nearest dollar.)

Note: Explain all steps comprehensively.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91147832

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