Your company is planning to make an offer of $67 per share. You applied for low interest loans and will receive the followings:

a) 3-years loan of $3.5 million, zero interest

b) 32-years loan of $2.5 million, 2.5% interest,

while the normal borrowing rate is 8.5%. How much is the interest subsidy worth?

and What is the interest rate if a deposit subject to annual compounding is doubled after 5 years?