How much does jack pay for the loan

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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?

Reference no: EM13976540

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