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Q 2-13 Elmo borrows $50,000 from a bank to renovate Dorothy's fish bowl. The bank charges an annual simple discount rate of 3% and requires
Q 2-13 Elmo borrows $50,000 from a bank to renovate Dorothy's fish bowl. The bank charges an annual simple discount rate of 3% and requires the loan to be paid back in a single payment made 8 years from now. In order to pay the loan back, Elmo immediately deposits $40,000 into a fund that earns an annual simple interest rate of 9%. After paying back the loan using the accumulated money from the fund, how much money will Elmo have left over to help Mr. Noodle update his wardrobe
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