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Fares makes 7 annual end-of-year payments of $13,000 each on a loan with a market rate...

Fares makes 7 annual end-of-year payments of $13,000 each on a loan with a market rate of 6%. If annual inflation is 3%, what would be the equivalent annual payment in constant dollars? Hint: compute the present value of the 7 annual payments first.

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