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Today, You Are Borrowing Money and Must Repay the Lender

Question 95

Multiple Choice

Today, you are borrowing money and must repay the lender one year from now with a lump-sum payment of $12,800.How much money are you borrowing if the interest rate is 8.45 percent, compounded monthly?


A) $12,000.00
B) $10,550.00
C) $11,766.32
D) $10,762.14
E) $11,802.67

Correct Answer:

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