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Clayton purchased a five-year financial instrument having the following features: Clayton receives payments of $1000 at the end of each year for 5 years. These
Clayton purchased a five-year financial instrument having the following features: Clayton receives payments of $1000 at the end of each year for 5 years. These payments are invested at 4% interest. At the end of each year, the interest earned is reinvested at 3%. If Clayton earned a yield rate of 4% on his investment, how much did he pay for the financial instrument?
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