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A debt of $5000, which was due 5 years from now, is instead going to be repaid by three payments: $2000 now, $1000 in 2
A debt of $5000, which was due 5 years from now, is instead going to be repaid by three payments: $2000 now, $1000 in 2 years' time and the third payment after 4 years. What will be the final payment if the assumed interest rate is 6% per annum compounding half-yearly? ( The correct answer is 1053.94 can you explain this?)
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