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Amber loans Fred 9 0 0 0 today. Fred will make monthly payments of P starting in one month for three yearsbased on a force

Amber loans Fred

9000

today. Fred will make monthly payments of P starting in one month for three yearsbased on a force of interest rate of

8 % .

Calculate P

.

When Amber receives the payments, she is able to investthem in a junk bond fund and earn an annual nominal interest rate of

12 %

compounded monthly. Calculate theoverall annual nominal interest rate Amber earns over the three years

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