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How much will she have to pay now

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Question - Some debts can be repaid at a discount if they are paid early. Jen borrowed money 5 years ago and the loan is due 2 years from now. If she pays it back in 2 years, the debt will be $10 346. If she repays it now, she can get a discount of 8%, compounded semi-annually.

a) How much will she have to pay now?

b) How much will she save if she pays early?

Reference no: EM132889333

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