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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,

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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? Possible Answers

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