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It is now January 1, 2019, and you will need $1,000 on January 1, 2023, in 4 years.

Your father offers to

give you $400 on January 1, 2020. You will then make six additional equal payments each 6 months from July 2020 through January 2023. If your bank pays 8% compounded semiannually, how large must each payment be for you to end up with $1,000 on January 1, 2023?

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