Schroeder borrows 7400 dollars from Peppermint Patty at an effective rate of 2.6 percent, and agrees to make 12 equal annual payments (the first one year later) to repay the loan. Immediately after she receives the 5th payment, Peppermint Patty sells the loan to Franklin at a price that will provide Franklin with a yield of 7.1 percent effective. How much does Franklin pay for the loan?
Answer = dollars.