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Fred owes $5000 due in three years and $10,000 due in 11 years. Unfortunately, Fred is unable to meet the $5000 obligation. By mutual consent

Fred owes $5000 due in three years and $10,000 due in 11 years. Unfortunately, Fred is unable to meet the $5000 obligation. By mutual consent with the lender, Fred is allowed to pay off both loans after eight years at 9% compounded annually. (eight years is the focal date.) 

How much does Fred pay?



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