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2. You get a loan of $10,000 for your startup today. You are expected to pay 24 equal monthly installments (SA per month) at APR
2. You get a loan of $10,000 for your startup today. You are expected to pay 24 equal monthly installments (SA per month) at APR 12%, compounded monthly, starting from a month from today. At the end ofthe first year, bank offers you a new deal. If you pay an additional $800 at the time of your 12th payment, you will only have to make 10 more payments of SA instead of 12 more payments a) Would you take this deal if you do not have $800 at the time of the 12h payment and you would have to borrow it at APR %12? Would you take the deal if you have $800 at the time of the 12th payment and also have a separate investment opportunity that pays 2% per month? b) Given that you are facing the case under part (b), what is the IRR of taking the $800 deal that the bank offers? c)
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