A particular project requires a single investment of $50,000 which is to be funded by a loan.
Question:
A particular project requires a single investment of $50,000 which is to be funded by a loan. The project is then expected to return $20,000 and $40,000 2 and 4 years later, respectively, which will be invested in a deposit account. Determine the maximum interest rate such that the project is profitable. You should assume that the same rate applies to both loans and deposits.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Introduction To Actuarial And Financial Mathematical Methods
ISBN: 9780128001561
1st Edition
Authors: Stephen Garrett
Question Posted: