Question: Two loans for equal amounts are amortized at 6.7% effective. Loan L is to be repaid by 48 equal annual payments. Loan M is to

Two loans for equal amounts are amortized at 6.7% effective. Loan L is to be repaid by 48 equal annual payments. Loan M is to be repaid by 48 annual payments, each containing equal principal amounts with the interest portion of each payment based upon the unpaid balance. The payment for loan L first exceeds the payment for loan M at the end of year k.

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