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Duane Borrowed $3,000 from His Grandmother Five Years Ago

Question 47

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Duane borrowed $3,000 from his grandmother five years ago. The interest on the loan was to be 5% compounded semi-annually for the first three years, and 6% compounded monthly thereafter. If he made a $1,000 payment 2½ years ago, what is the amount now owed on the loan?

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