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You lend $400 to a friend who promises to pay you $110 at the end of 6 months, 12 months, 18 months, and 24 months.

You lend $400 to a friend who promises to pay you $110 at the end of 6 months, 12 months, 18 months, and 24 months.

If you can reliably earn 5% per year, what is the net present value (NPV) of the loan described in Q7?

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