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7. (10pts) Angela loans Kathy $8,000. Kathy repays the loan by paying $6,000 at the end of two years and $4,000 at the end of

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7. (10pts) Angela loans Kathy $8,000. Kathy repays the loan by paying $6,000 at the end of two years and $4,000 at the end of four years. The money received at t = 2 is immediately reinvested at an annual effective interest rate of 5%. Find Kathy's annual effective rate of interest and Angela's annual yield

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