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A person has made an arrangement to borrow $1,200 now and another $1,200 two years hence. The entire obligation is to be repaid at the
A person has made an arrangement to borrow $1,200 now and another $1,200 two years hence. The entire obligation is to be repaid at the end of four years. If the projected interest rates in years one, two, three, and four are 9%, 15%, 15%, and 16%, respectively, how much will be repaid as a lump-sum amount at the end of four years? Click the icon to view the interest and annuity table for discrete compounding when i = 9% per year. Click the icon to view the interest and annuity table for discrete compounding when i= 15% per year. Click the icon to view the interest and annuity table for discrete compounding when i= 16% per year. A lump-sum amount to be repaid at the end of four years is $(Round to the nearest dollar.)
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