Suppose you lend $16,000 to a friend at an APR of 7.90%.

Your friend will pay you back beginning next month with 72 monthly installments. You can reinvest the payments you receive in your money market account at an APR of

2.30%, calculated monthly.

a. How much will your friend pay you each month? $ enter your response here

b. How much will you have in your account at the end of 72 months? (to nearest $)enter your response here

c. What is your effective annual return (EAR), _._ _%? enter your response here