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Three years ago Jake borrowed R 7 5 0 0 from Martha. The condition was that he would pay her back in seven years time
Three years ago Jake borrowed R from Martha. The condition was that he would pay her back in seven years time at an interest rate of per year, compounded semiannually. Six months ago he also borrowed R from Martha at per year, compounded monthly. Jake would like to pay off his debt four years from now.
After seeing what he must pay Martha, Jake decides to reschedule his debt as two equal payments: one payment now and one three years from now. Martha agrees on condition that the new agreement, that will run from now, will be subjected to interest, compounded quarterly. The amount that Jake will pay Martha three years from now is
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