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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. 1.Fredborrowed$2,000fromaloansharktoberepaidin8yearswith14%annuallycompoundedinterest.Theloanmayberepaidattheendofanyearlieryearwithnoprepaymentpenalty.
    1. a.What amount will be due if Fred repays the loan at the end of year 1?
    2. b.What amount will be due if Fred repays the loan at the end of year 4?
    3. c.What amount will be due if Fred repays the loan at the end of year 8?
  2. 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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