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A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $3,100 per month for the next hree years and then $2,100 per month for two years after that. If the bank is charging customers 10.00 percent APR, how much would be willing to lend the business owner? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Present value

A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $3,100 per month for the next hree years and then $2,100 per month for two years after that. If the bank is charging customers 10.00 percent APR, how much would be willing to lend the business owner? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Present value

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $3,100 per month for the next three years and then $2,100 per month for two years after that. If the bank is charging customers 10.00 percent APR, how much would it be willing to lend the business owner? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Present value
Transcribed Image Text:A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $3,100 per month for the next three years and then $2,100 per month for two years after that. If the bank is charging customers 10.00 percent APR, how much would it be willing to lend the business owner? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Present value
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