What is the present value of this one-year loan

Reference no: EM13288550

You have taken out a one-year loan that requires payments of $100 per month for the first 6 months, and then the payments rise to $200 per month for the final 6 months. The interest rate is 6% APR with monthly compounding, and payments begin in one month. What is the present value of this one-year loan?

1.$1612
2.$1734
3.$1901
4.$1953

Reference no: EM13288550

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