Question: Katie needs to borrow $ 50,000, but she cannot make periodic payments. Instead she would like to make a lump- sum payment in 10 years.

Katie needs to borrow $ 50,000, but she cannot make periodic payments. Instead she would like to make a lump- sum payment in 10 years. Assuming that Katie and the bank agree on 8 percent interest compounded quarterly, how much money will Katie owe in 10 years?

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