Angela loans Kathy $8,000. Kathy repays the loan by paying $6,000 at the end of one and a half years and $4,000 at the end of the end of three years. The money receive at t = 1.5 is immediately reinvested at an annual effective interest rate of 6%. Find Kathy's annual effective rate of interest and Angela's annual yield.

The book shows Angela's as 9.65 and Kathy's as 11.38.

What is getting me stuck is what to do at time 1.5

3 booo 1