A bank is negotiating a loan. The loan can either be paid off as a...
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A bank is negotiating a loan. The loan can either be paid off as a lump sum of $120,000 at the end of four years, or as equal annual payments at the end of each of the next four years. If the interest rate on the loan is 12%, what annual payments should be made so that both forms of payment are equivalent? A. $40,173 B. $35,151 OC. $25,108 D. $20,086
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