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Louisa owns a furniture store and decided to help a friend out by allowing him to purchase $ 5 , 0 0 0 of furniture
Louisa owns a furniture store and decided to help a friend out by allowing him to purchase $ of furniture using her
credit at compounded semiannually. The furniture loan is to be repaid in four years. However, after years
Louisa can no longer have the loan outstanding and needs the money. Avco Financial has agreed to purchase the maturity
amount of this loan from Louisa using a discount rate of compounded monthly. If Louisa proceeds with selling the
loan contract to Avco Financial, what sum of money can she expect to receive?
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