Question: On January 1, Laura Brown borrowed $1000 from the Friendly Finance Company. The loan is to be repaid by four equal payments, which are due

On January 1, Laura Brown borrowed $1000 from the Friendly Finance Company. The loan is to be repaid by four equal payments, which are due at the end of March, June, September, and December. If the finance company charges 18% interest, compounded quarterly what is the amount of each payment? What is the effective annual interest rate?

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