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A bank is offering aloan of $25,000 with a nominal interest rate of 18% compounded monthly, payable in 60 months. (Hint: The loan origination fee of 2% will be taken outfrom the loan amount.)
Problem a) What is the monthly payment?
Problem b) If a loan origination fee of 2% is charged at the time of theloan, what is the What is the monthly payment?
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