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Suppose you lend $29,500 to a friend at an APR of 7.90%. Your friend will pay you back beginning next month with 60 monthly installments.
Suppose you lend $29,500 to a friend at an APR of 7.90%. Your friend will pay you back beginning next month with 60 monthly installments. You can reinvest the payments you receive in your money market account at an APR of 1.20%, calculated monthly a. How much will your friend pay you each month? b. How much will you have in your account at the end of 60 months? (to nearest $) c. What is your effective annual return (EAR), _-_ _%
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