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6. (15 pts) You are a venture capitalist (VC) who makes loans to new businesses. You borrow capital at 8% and lend it a 12%.
6. (15 pts) You are a venture capitalist (VC) who makes loans to new businesses. You borrow capital at 8% and lend it a 12%. You lend $500,000 today to a new business startup who will begin paying you back annual payments for 8 years. Compounding is annual. (a) What is the annual loan payment you will receive? (b) What is the Present Worth of this loan to your VC firm
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