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A corporation will borrow $ 4 0 0 , 0 0 0 from a bank at a rate of 8 % per year. The terms

A corporation will borrow $400,000 from a bank at a rate of 8% per year. The terms of the loan require the bank to repay 20% of the original loan amount at the end of each year for 5 years.
The loan contract calls for a balloon payment at the end of year 3.
Calculate the balloon payment.

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