Determining the interest on the loan

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Chris, an old friend from high school years shows up at your front door and wants to borrow some money from you to invest in a business (that is what he claims). He promises to pay back $45,000 to you next year. Obviously you won't lend that kind of money to him without receiving a bond from him. Moreover, you suspect that the business he is investing in is a shady one. To get compensated for the risk you are taking, you charge Chris 50% interest on the loan (which is rather cruel, if you ask me). In other words, you are willing to pay him only (________) dollars for his bond (this is how much you are willing to lend him today).

Reference no: EM132299171

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