What is the equivalent amount of this loan at present

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Reference no: EM131813712

A student receives a monthly loan of $1000 with an interest rate of 3% obtainable atthe beginning of each month during three years.

a) What is the equivalent amount of this loan at present?

b) What is the equivalent amount of this loan at the end of three years?

c) He wants to pay back this loan after four years uniformly at the end of each month during three years. Draw the cash flow diagram and calculate the monthly payback.

Reference no: EM131813712

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