BankOne issues $200 loans to borrowers and there are two types of borrowers. Type A repays the loan 100% of the time, but type B repays the loan only…

BankOne issues $200 loans to borrowers and there are two types of borrowers. Type A repays the loan 100% of the time, but type B repays the loan only with probability 0.73. In this case, at the competitive interest rates, type A must make a repayment of ____ and type B repays ____.

A) $210; $274

B) $200; $274

C) $210; $244

D) $200; $244

 
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