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11. Alternatively, he could invest $100,000 in a financial product offered by Dragon Bank that would pay
him $1,000 each month (starting in one month from today) forever. What is the APR (monthly
compounded) implied in Dragon Bank's financial product (assuming the present value of all future
payments is equal to Doug's investment)?
a) 1.0%
b)
12.0%
c)
12.7%
d)
13.2%
e )
13.3%

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