Suppose you lend $46500 to a friend at an APR of 10.00?%. Your friend will pay you back beginning next month with 48 monthly installments. You can reinvest the payments you receive in your money market account at an APR of 1.40%, 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 48 months (to nearest $)
c. What is your effective annual return (EAR), _._ _%