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Cal Lury owes $23,000 now. A lender will carry the debt for seven more years at 8 percent interest. That is, in this particular case,

Cal Lury owes $23,000 now. A lender will carry the debt for seven more years at 8 percent interest. That is, in this particular case, the amount owed will go up by 8 percent per year for seven years. The lender then will require that Cal pay off the loan over the next 15 years at 11 percent interest.

What will his annual payment be?

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