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Budding entrepreneurs at "Your Business" were excited that their presentation at the SAIT annual entrepreneurial competition was voted the best by every judge. An angel investor in the audience was very impressed by your business plan and offered to help you start your business by offering you a loan at 4.885% compounded semi- annually.
After three years, your business had savings of $33,000 and your business used the entire amount to completely pay off the outstanding debt with the investor.
Problem 1: If your business had taken the same loan amount from a local bank, it would have accumulated to $29,500 in 30 months instead of three years. What is the interest rate compounded semi-annually charged by the local bank? Express the nominal rate as a percentage rounded to 4 decimal places.
This document contains various important questions and their appropriate answers in the subject field of Economics.
Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.
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