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Question 5 10 pts You borrow $400,000 at a rate of 5% per year compounded monthly and make monthly payments for 2 years to re

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Answer #1

Answer

Option 3

the monthly interest rate =yearly nominal rate /number of compounding in a year =5/12 %

number of months =12*2=24

PV=-400000

so the formula is in the option 3.

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