The second option requires her to make a single payment of


On January 1, 2008, Renee has two options for repaying her loan. The first option requires her to make payments of $1,000 at the beginning of each year for 10 years (wit the first payment to be made immediately on January 1, 2008). The second option requires her to make a single payment of $10,000 at the end of N years. Interest is credited at an effective annual rate of 13%. Determine N.

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Financial Econometrics: The second option requires her to make a single payment of
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