Question: A loan is to be repaid with level installments payable at the end of each halfyear for 3.5 years, at a nominal rate of interest

A loan is to be repaid with level installments payable at the end of each halfyear for 3.5 years, at a nominal rate of interest of 8% convertible semiannually. After the fourth payment the outstanding loan balance is 5,000. Find the initial amount of the loan.

Answer should be: $10,814.16

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