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In return for a promise to receive $500 at the end of 1 year, a person agrees to pay $100 at once, $200 at the
In return for a promise to receive $500 at the end of 1 year, a person agrees to pay $100 at once, $200 at the end of 4 years, and to make a further payment at the end of 8 years. Find the payment at the end of 8 years if the annual effective rate of discount is 5%. (The answer should be: 319.71).
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