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