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9. Jerry's Tree Services is trying to raise debt funds from a prospective venture investor, SureWay LLC. SureWay indicated to Jerry Lau that the
9. Jerry's Tree Services is trying to raise debt funds from a prospective venture investor, SureWay LLC. SureWay indicated to Jerry Lau that the annual interest rate on risky venture loans is currently 14 percent. Jerry is seeking a 5-year loan with monthly payments. He is willing to pay back $225,000 at the end of 5 years. However, due to cash flow problems he can afford to pay interest at a 10 percent annual rate. a. Calculate the dollar amount that SureWay venture investors would lend to Jerry's Tree Services. b. What would be the dollar amount of the loan if the loan was made for only three years?
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