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A loan is amortized over five years with monthly payments (end of month) at a nominal annual interest rate of 5% compounded monthly. The first

A loan is amortized over five years with monthly payments (end of month) at a nominal annual interest rate of 5% compounded monthly. The first payment is for 500 and is to be repaid one month from the date of the loan. Each subsequent monthly payment will be 20 more than the previous payment. Calculate the amount of interest paid in total in the first 40 payments.

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