Unformatted text preview: on the loan payment at the end of two years is 14%. 16. Claire loans 20,000 to Jim. Jim repays the loan with two payments of 12,000. One payment is made at the end of one year and the second payment is made at the end of two years. Claire reinvests the payment at time 1 at a reinvestment rate of i. Claire’s annual yield is 12%. Calculate i. Answers: 15. a. 11.1574% b. 9.8980% c. 12.0210% 17. 9.0667%...
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This note was uploaded on 02/05/2012 for the course MA 373 taught by Professor Staff during the Spring '08 term at Purdue.
- Spring '08