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Business, 12.03.2020 05:32 jamarstand

A loan is negotiated with the lender agreeing to accept $8,000 after one year, $9,000 after two years, and $20,000 after four years in full repayment Of the loan. The loan is negotiated so that the borrower makes a single payment Of $37,000 at time T and this results in the same total present value Of payments when calculated using an annual effective rate of 5%. Estimate T using the method of equated time. Also find T exactly.

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A loan is negotiated with the lender agreeing to accept $8,000 after one year, $9,000 after two year...
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