Question
1. Discuss the difference between equity and debt. 2. Discuss three traits that venture capitalists look for in an entrepreneur. 3. Define peer to peer
1. Discuss the difference between equity and debt.
2. Discuss three traits that venture capitalists look for in an entrepreneur.
3. Define peer to peer lending. How does it differ from a bank loan?
4. List and discuss two types of debt.
5. List 3 challenges you will face when starting your business and discuss how you will overcome each.
6. Illustrate the difference between simple interest and compounding interest.
7. Cookie wants $100,000 5 years from now. Assuming a rate of 3% how much do they need to deposit today to have $100,000 5 years from now?
8. Cookie put $25,000 into an investment with a return of 6%. How much will they have in 40 years?
9. Cookie has decided to deposit $3000 into an account that gets 5% interest per year. He will be depositing an additional $3,000 per year. How much will they have at the end of ten years?
10. Cookie has to decide which project to take on. The first will yield them $100,000 5 years from now. The initial cost is $45,000. Please assume a rate of 3% for inflation. The second project will yield $150,000 5 years from now but has an initial cost of $80,000. Please also assume a rate of 3% for inflation. Which project should he take on and why?
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