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1.Fredborrowed$2,000fromaloansharktoberepaidin8yearswith14%annuallycompoundedinterest.Theloanmayberepaidattheendofanyearlieryearwithnoprepaymentpenalty. a.What amount will be due if Fred repays the loan at the end of year 1? b.What amount will be due if Fred repays
- 1.Fredborrowed$2,000fromaloansharktoberepaidin8yearswith14%annuallycompoundedinterest.Theloanmayberepaidattheendofanyearlieryearwithnoprepaymentpenalty.
- a.What amount will be due if Fred repays the loan at the end of year 1?
- b.What amount will be due if Fred repays the loan at the end of year 4?
- c.What amount will be due if Fred repays the loan at the end of year 8?
- 2. What is the rate of return on an investment of $10,606 if the company will receive $2,000 each year for the next 10 years?
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