Consider another loan that is to be repaid over 20 years. The first repayment alternative requires the

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Question:

Consider another loan that is to be repaid over 20 years. The first repayment alternative requires the borrower to pay $3,000 per annum monthly in advance and the second alternative requires the borrower to make payments at an annual rate of $3,200 every fourth year in arrears. Determine which terms would provide the best deal for the borrower at a rate of interest of 6% per annum effective.