your friend in problem 3 comes up with another way to pay off the $300 he borrowed from you.He has reputable friend who is going to pay your friend $400 in 4 years (to cover a loan he had made to him earlier).Your friend would just have this reputable person pay you the $400 instead in order to liquidate the $300 loan he made from you.since you know this is an honest and reputable person, you would consider this deal if you earned at least 7% per year on the deal.What kind of return would you be earning in this new deal?

Please simplify. Please