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A loan of A is repaid over 15-years as follows: Interest at ;? = 7% is paid every 6-months and A is paid back in

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A loan of A is repaid over 15-years as follows: Interest at ;? = 7% is paid every 6-months and A is paid back in one lump sum at the end of 15-years. The borrower can earn i 2) = 5% on his/her savings for the first 10 years and i = 4% for the last 5 years. The semi-annual expense of the loan is $3235.55. (a) What is the value of A? answer to nearest dollar) (4 marks) 6) What is the net amount of interest paid in the 21" semi-annual expense payment? (4 marks)

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