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The Corner Bakery Needs $86,000 Today for Remodeling

Question 81

Multiple Choice

The Corner Bakery needs $86,000 today for remodeling.They have obtained a 2-year, pure-discount loan at an interest rate of 6.8 percent, compounded annually.How much must they repay in two years?


A) $94,064.20
B) $89,540.21
C) $90,860.00
D) $91,159.39
E) $98,093.66

Correct Answer:

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