Question: Jacques has just been notified that the combined principal and interest on an amount he borrowed 19 months ago at 8.4% interest compounded monthly is

Jacques has just been notified that the combined principal and interest on an amount he borrowed 19 months ago at 8.4% interest compounded monthly is now $2297.78 and must be repaid now that the loan contract is complete.

a. What was the amount of the original loan?

b. If someone purchased the loan contract after 8 months to yield interest at 7.9% compounded quarterly, what was the purchase price of the loan contract?

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