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7. A loan of $8000 is to be paid off over a 5-year period with a payment of $2000 made at the end of the
7. A loan of $8000 is to be paid off over a 5-year period with a payment of $2000 made at the end of the second year and the remaining balance paid off at the end of the fourth year. If the interest rate is 4% compounded quarterly, what is the value of the final payment? (8 marks)
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