Question: A borrows 1000 from B and agrees to pay it in 8 equal installments at 18% effective, with the first payment due in one year.

A borrows 1000 from B and agrees to pay it in 8 equal installments at 18% effective, with the first payment due in one year. After 3 payments B sells her right to future payments to C at a price which yields C 19% effective. a. Find the, price which C pays to B and overall yield rate to B. b.Find overall yield rate to C.

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