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Noah borrows $ 2 , 5 0 0 for five years at the annual nominal interest rate 1 2 % compounded monthly. He promises to

Noah borrows $2,500 for five years at the annual nominal interest rate 12%
compounded monthly. He promises to repay all the accumulated interest and principal in a
lump sum amount at the end of five years.
1. Calculate the lump sum amount of loan repaid at the end of year 5.
2. Calculate the interest portion.

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