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A small business owner visits his bank to ask for a loan

Present Value of Multiple Annuities

A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $1,800 per month for the next three years and then $2,800 per month for the two years after that. If the bank is charging customers 7.25 percent APR, how much would it be willing to lend the business owner?

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Dissertation: A small business owner visits his bank to ask for a loan

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