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A pure discount loan of $20,000 to be received in 7 years is sold in the marketplace today. (a) If it is sold at $16,000

A pure discount loan of $20,000 to be received in 7 years is sold in the marketplace today. (a) If it is sold at $16,000 what is the rate of return (APR) (b) What price would you pay for it if you want to earn 4% on such loans? Use equation or HP 10bll+ to answer. Do not use Excel.

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