$5200 @ 7% p.a. or part thereof would return $5564, which if invested @6.3% p.a. would grow to $7551.85 after 5 years.

Eric Cobbe borrowed $5200 from his friend Frank Cronin to pay for remodeling work on his house. He repaid the loan 10 months later with simple interest at 7%. Frank then invested the proceeds in a 5-year certificate of deposit paying 6.3% compounded quarterly. How much will he have at the end of 5 years?