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Find the outstanding balance immediately

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Problem 1: A loan is to be repaid with $1,000, $2,000, and $3,000 at the end of the first, second, and third year. Interest is at the rate of 5% compounded semiannually. Find the outstanding balance immediately after the second payment is paid

(a) by the prospective method, (b) by the retrospective method

Reference no: EM132751978

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