Suppose you lend $43000 to a friend at an APR of 6.30?%. Your friend will pay you back beginning next month with 96 monthly installments. You can reinvest the payments you receive in your money market account at an APR of 3.60%, 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 96 months (to nearest $)
c. What is your effective annual return (EAR), _._? _%