Your best friend borrowed $5,000 from you three years ago. At that time, it was agreed that you would charge him 5 percent interest compounded annually. The day after he borrowed the money, he skipped town and you had not heard from his until this morning. This morning he contacted you, apologized, and wants to meet you this afternoon to repay you the entire amount he now owes you. How much will he need to pay you this afternoon?
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