8. A business angel is interested in investing $200,000 in a new venture that has an interesting growth potential. This investor predicts to leave his capital in this business for 4 years estimating an annual rate of return of 25%. Show your complete calculations (3 points)

1. What would be the expected capital (in $ amount) at the end of the fourth year?

2. If the business plan estimates a value of the business in 4 years to be $5 million, what would be ownership of this investor? (answer with 2 decimals)