Investor #1 decided to loan you the $300,000, paying all of the interest (8% per year) and principal in one lump sum at the end of 5 years.

Investor #2 offers you the $300,000, paying interest at the rate of 8% per year for 4 years and then a final payment of interest and principal at the end of the 5th year.

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D10 1 Pay all of the interest (8% per year) and principal in one lump sum at the end of 5 years 3 Amount 300,000 4 Period (years) 5 Interes rate 8% Total Payment 9 Answer- 10 interest Paid. 14 16 Refer to the Solved Example 6 on Page 84 of your text. 17 18 19