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How much does franklin pay for the loan

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Schroeder borrows 8500 dollars from Peppermint Patty at an effective rate of 4.9 percent, and agrees to make 9 equal annual payments (the first one year later) to repay the loan. Immediately after she receives the 5th payment, Peppermint Patty sells the loan to Franklin at a price that will provide Franklin with a yield of 6.8 percent effective. How much does Franklin pay for the loan?

Reference no: EM132651214

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