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No idea. I would try to swap out the easiest things first, such as the RAM and hard drive, but this could easily be a GPU or other major motherboard failure.
 
it definitelylooks like your GPU is dead.
replacing your GPU could be a fix for you, but I dont think it's worth it for such an old iMac..

But you can concider it, if you can find one for example for a cheap price..
 
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