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Sarah sold her car to Steve, and is allowing him to pay her on an installment plan. He has agreed to make 5 yearly payments
Sarah sold her car to Steve, and is allowing him to pay her on an installment plan. He has agreed to make 5 yearly payments of $5,000 each, with the first payment today. If the discount rate for cashflows from Steve is 6.2%, what would Sarah have sold her car for if Steve paid cash upfront? Please round your answer to the nearest dollar.
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