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Question: A bank makes a fixed payment loan to a student for $50,000. The loan is to be repaid in 10 annual fixed payments beginning 4 years after the loan is made. That is, supposing that the loan is made at the beginning of year 0, the fixed payments F P start at the beginning of year 4 and continue through the beginning of year 13. If the lender requires a yield to maturity of i = 0.05, what must be the value of the annual fixed payments?

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