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Problem 16 (30 points) A $1,000 loan is to be repaid in ten installments, one due at the end of each year for ten years.

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Problem 16 (30 points) A $1,000 loan is to be repaid in ten installments, one due at the end of each year for ten years. The first five payments are SK each. The last five payments are $3K each. What is the principal outstanding just after the seventh payment? Express your answer in terms of present values

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