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Assume your friend Norman offers to pay you $ 6 , 5 0 0 in 5 years if you will let him borrow some money

Assume your friend Norman offers to pay you $6,500 in 5 years if you will let him borrow some money now. If you need a return of 9% on your money, how much will you lend Norman now to have him repay you the $6,500 in 5 years? (assume annual compounding)

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