$)$ Suppose that you want to scale up your business by double. To do so$,$ today $($t$),$ you will

borrow $100$ from a bank. This bank loan is due t$+1$ and the interest rate is $5\%.$ So$,$ the total

investment at t is $200(=100($your money$)+100($borrowed money from bank$)).$

i$.$ Assume your company is a sole proprietorship company. What is the profit and net

gain in each scenario?