Mathematics, 07.02.2021 23:20 QueenNerdy889
Assume a bank loan requires an interest payment of $85 per year and a principal payment of $1,000 at the end of the loan's eight-year life. At what amount could this loan be sold for to another bank if loans of similar quality carried an 10 percent interest rate? That is, what would be the present value of this loan?
Answers: 1
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