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What should be the amount of the second payment

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Question - The principal plus interest at 6% compounded quarterly on a $15,000 loan made 2 1/2 years ago is due in two years. The debtor is proposing to settle the debt by a payment of $5000 today and a second payment in one year that will place the lender in an equivalent financial position, given that money can now earn only 4% compounded semiannually. What should be the amount of the second payment?

Reference no: EM132563473

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