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Alex loans $10,000 to Boris to be repaid with three level annual payments of $K at the end of years one, two and three. Alex

Alex loans $10,000 to Boris to be repaid with three level annual payments of $K at the end of years one, two and three. Alex reinvests each payment at an annual effective interest rate of 7.2%. Taking into account reinvestment, Alex realizes an annual yield rate on the loan of 7%. Determine K.

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