A mate from Australia is visiting you in America.While having drinks one Saturday night you ask your mate from Australia; "Can I hit you up for a loan?I have to pay some bills!"You have been mates for years and he says; "no worries mate, I sold some crocs recently and made a bundle.How much do ya need?"You answer $100,000.He immediately sends you an interact transfer, and states he's not going to charge you interest on the loan.You both agree to the following terms of payment:

Year

Amount of Payment

1

$0.00

2

5,000

3

15,000

4

20,000

5

18,000

6

25,000

7

30,000

Is this loan interest free as your mate states?Justify your answer using two rates of return that we've discussed in class - you can use MS Excel formula functions to perform any calculations.