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Smith borrows $ 5 , 0 0 0 today with interest at a nominal rate of 5 % per year compounded semiannually. He agrees to
Smith borrows $ today with interest at a nominal rate of per year compounded
semiannually. He agrees to pay $ one year from today, $ two years from today,
and the balance three years from today. In which of the following ranges is the amount of
the final payment?
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