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On January 3 1 , Aureliano borrows $ 5 , 0 0 0 from Amaranta, giving a promissory note as a promise to pay. The

On January 31, Aureliano borrows $5,000 from Amaranta, giving a promissory note as a promise to pay. The loan will be paid on April 30 of the same year, at a simple annual interest rate of 12%. On March 1, Amaranta sells the promissory note to Jos Arcadio, who pays Amaranta an amount such that the annual rate of return from March 1 to the maturity date will be 15%.
a) Determine the amount to be paid by Aureliano to Jos Arcadio.
b) Determine the amount paid by Jos Arcadio to obtain the promissory note and the yield (in terms of the interest rate).
(in terms of the simple annual interest rate) that Amaranta obtained.
c) Suppose that Jos Arcadio paid an amount such that Amaranta's yield is 12%.
Explain the 3 items in as much detail as possible.

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