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Suppose you take out a $10,000 loan at a 6% nominal annual rate

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Suppose you take out a $10,000 loan at a 6% nominal annual rate. The terms of the loan

require you to make 12 equal end-of-month payments each year for 4 years, and then an

additional final (balloon) payment of $4,000 at the end of the last month. What will your

equal monthly payments be?

a.

$137.96

b.

$145.22

c.

$152.86

d.

$160.91