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How much will be repaid as a lump-sum amount

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Problem - A person has made an arrangement to borrow $1,200 now and another $1,500 two years hence. The entire obligation is to be repaid at the end of four years. If the projected interest rates in years one, two, three and four are 8%, 12%, 10% and 12%, respectively, how much will be repaid as a lump-sum amount at the end of four years?

Reference no: EM132452965

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