(1 point) You are considering making a loan: you lend Ao dollars now. Two years from now, the other party will pay back an amount A2 dollars. You need to compare the benefit to you, of making the loan to other possible investments. The other investments have known effective annual return rates (or APYs) so you decide to compute the effective annual return rate of making the loan Cash compounded annually at rate r would grow by a factor 1 + r each year. Based on the (as yet unknown) rate r, the present value of the future payment is A2 d(0, 2) dollars, where d(0, 2) Your answer should be a function of r. Type r as r. Solve the equation Ao-A2 d(0, 2) for re,the effective annual return rate associated with the loan: is the discount factor for the time interval 0 to 2 (type A2 as A2, Ao as AO) This rate is also known as the internal return rate