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5. (4 Points) A bank customer takes out a loan of $500 with a 16% nominal interest rate convertible quarterly. The customer makes payments of

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5. (4 Points) A bank customer takes out a loan of $500 with a 16% nominal interest rate convertible quarterly. The customer makes payments of $20 at the end of each quarter. Calculate the amount of principal in the fourth payment. (a) 0.0 (b) 0.9 (c) 2.7 (d) 5.2 (e) 6.4

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