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You are borrowing money to buy a sound system. If you can make payments of $400 per quarter starting three months from now at an

You are borrowing money to buy a sound system. If you can make payments of $400 per quarter starting three months from now at an interest rate of 4% per annum, how much will you be able to borrow for the sound system today if you finance the amount over five years?

a. $21,719.63

b. $1,780.73

c. $7,218.22

d. $6,049.40

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