Suppose that you and your friend both need to borrow the same amount of money. You borrow

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Suppose that you and your friend both need to borrow the same amount of money.

You borrow money from Bank A, which offers loans at an annual interest rate of 4% with continuous compounding.

Your friend borrows money from Bank B, which offers loans an annual interest rate of 5.6% with monthly compounding.

If both loans have the same future value and the term of your loan is 101 months, what is the term of your friend's loan (in months)?

Related Book For answer-question

Principles of Finance

ISBN: 978-1285429649

6th edition

Authors: Scott Besley, Eugene F. Brigham

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Posted Date: Nov 17, 2023 05:45 AM

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Suppose that you and your friend both need to borrow the same amount of money. You borrow

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Principles of Finance

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