5. Calculate the annual amount of interest (assuming no principal repayment) for each of the following:

Term loan of $122,000 over 15 years at 6.5%:

Line of credit for $50,000 drawn 50% all year at 10%:

15 shares of stock purchased at $12.50 per share:

Bonds trading at par for $2,000 with a 7% rate:

6. If the owner of Bright Rays Tanning Salon, Inc. invested $200,000 and had an investor pay $45,000 for 15% of the corporation, what is the valuation of the business?

7. Visit the SBA Web site at http://www.sba.gov. Find three funding sources for a Comp-U-Ter, a computer rental and repair company. Briefly describe the fit of each and create a proposed financing mix, assuming a need for $58,000 in start-up funds divided as follows:

Equipment $27,000

Software $10,000

Supplies $ 1,000

Marketing $ 6,000

Utilities/services $ 4,000

Working capital $10,000