Question: A borrower has the following two options for repaying a loan: (i) Sixty monthly payments of 100 at the end of each month. (ii) A

A borrower has the following two options for repaying a loan:

(i) Sixty monthly payments of 100 at the end of each month.

(ii) A single payment of 6,000 at the end of K months. Interest is at the nominal

annual rate of 12% convertible monthly. The two options have the same present value.

Find K to the nearest integer.

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