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Suppose a bank agrees to lend $12,388 now and X three years from now in exchange for a payment of $159,804 in 12 years. Suppose

Suppose a bank agrees to lend $12,388 now and X three years from now in exchange for a payment of $159,804 in 12 years. Suppose that the bank charges interest at an effective annual rate of 9% for the first 6 years and at a force of interest t = 1/1+t for t 6. Determine the value of X.

(A) 50409.26 (B) 50423.26 (C) 50430.26 (D) 50402.26 (E) 50416.26

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