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A bank agrees to lend John $10,000 now and X three years later in exchange for a single repayment of $75,000 at the end of
A bank agrees to lend John $10,000 now and X three years later in exchange for a single repayment of $75,000 at the end of 10 years. The bank charges interest at an annual effective rate of 6% for the first 5 years and at a force of interest ???? = 1 ??+1 for ?? ? 5. Determine X.
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