Question: Walnut just bought a new cracker for $ 1 0 0 , 0 0 0 . 0 0 . To pay for the cracker, the

Walnut just bought a new cracker for $100,000.00. To pay for the cracker, the company took out a loan that requires Walnut to pay the bank a special payment of $51,000.00 in 2 months and also make regular monthly payments forever. The first regular payment is expected in 1 month and is expected to be $204.57. All subsequent regular payments are expected to increase by a constant rate each month forever. The interest rate on the loan is 0.89 percent per month. What is the monthly growth rate of the regular payments expected to be?
0.42%(plus or minus 1bps)
0.48%(plus or minus 1bps)
0.20%(plus or minus 1bps)
0.69%(plus or minus 1bps)
none of the answers are within 1bps of the correct answer
 Walnut just bought a new cracker for $100,000.00. To pay for

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