Tanya obtains a car loan of $5,000 on January 1, 1994, from Wheels Financing, to be paid in 36 monthly installments at a

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answerhappygod
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Tanya obtains a car loan of $5,000 on January 1, 1994, from Wheels Financing, to be paid in 36 monthly installments at a

Post by answerhappygod »

Tanya obtains a car loan of $5,000 on January 1, 1994, from
Wheels Financing, to be paid in 36 monthly installments at a 12%
nominal interest rate compounded monthly.
The first payment is due in one month. After the 14th payment,
Wheels Financing sells the remainder of the loan to Loans We Be for
a price that will yield Wheels Financing a 10% effective annual
yield.
Determine the price Loans We Be paid for the loan.
A < $2,400
B ≥ $2,400 but < $2,600
C ≥ $2,600 but < $2,800
D ≥ $2,800 but < $3,000
E ≥ $3,000
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