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A friend of Seth's who is a real estate developer needs to borrow $80,000 to finish a development project. He is desperate for cash and
A friend of Seth's who is a real estate developer needs to borrow $80,000 to finish a development project. He is desperate for cash and offers Seth 18%, compounded monthly, for 2.5 years. Find the future value of the loan. Does this loan meet Seth's goals of low risk? How could be reduce the risk associated with this loan? (Write your answer in this cell.) Show each step taken to obtain your answer. Press ALT + ENTER to insert a line break within each cell. Loan amount = $80,000 Rate of interest = 18% Compounded monthly rate of interest = 18/12 = 1.5% = 0.015 Fill in the information from the Case Study in cells D52 - D55. Use Excel's Future Value equation to determine the future value of this investment. Determine whether this loan is low risk. What can Seth do to reduce any risks associated with the loan
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