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 Exercise 5 (4 points) a) What is the difference between an annuity loan and a serial loan? You have obtained a loan offer of NOK 2 million

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 Exercise 5 (4 points) a) What is the difference between an annuity loan and a serial loan? You have obtained a loan offer of NOK 2 million. The nominal annual interest rate is 2% and the loan must be repaid with quarterly terms over 20 years. There are no other borrowing costs. b) If you could choose the type of loan (annuity or serial loan), which one would you choose and why?