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Manny borrows 7000 dollars from Moe at an effective rate of 5.6 percent, and agrees to make 10 equal annual payments (the first a year
Manny borrows 7000 dollars from Moe at an effective rate of 5.6 percent, and agrees to make 10 equal annual payments (the first a year from now) to repay the loan. Immediately after Manny makes the third payment, Moe sells the loan to Jack at a price that will provide Jack with a yield of 9.3 percent effective. How much does Jack pay for the loan?
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