Manny borrows 8600 dollars from moe at an effective rate of


Manny borrows 8600 dollars from Moe at an effective rate of 5.3 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 8.6 percent effective. How much does Jack pay for the loan?

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Financial Management: Manny borrows 8600 dollars from moe at an effective rate of
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