A. Evatuate the two divergent challenges faced by Microfinance institutions(MFIs). Identify and explain the measurements used to assess the performance of MFIs in respect to these two challenges. select any region, such as south Asia, Sub-Saharan Africa, Central America etc. Outline how MFIs have attempted to overcome these challenges in that particular region. In your opinion have been able t succeed over the last decade? provide data to support the analysis.

B. The following data is from microfinance institution (MFI) from indonesia relating to the components of their current Micro-loan interest rates:

Capital Costs= 6%

operating costs=7%

tax expenditure=3%

defaulted loans=3%

Net profit after tax=5%

calculate the effective sustainable interest rate. Show the calculations. ( show answer in a percentage