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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 $

5, 000

today with interest at a nominal rate of

5 %

per year compounded

semiannually. He agrees to pay $

1, 000

one year from today, $

2, 000

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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