Present value of multiple annuities

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Reference no: EM131461163

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 $2,400 per month for the next three years and then $3,400 per month for the two years after that. If the bank is charging customers 7.50 percent APR, how much would it be willing to lend the business owner?

a) $13,500

b) $137,530

c) $180,000.

d) $169,678

Reference no: EM131461163

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