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What is the nominal rate of return per year on an investment

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a. A shrewd investor loaned $1,000,000 to a start-up company at 10% per year interest for 3 years, but the terms of the agreement were such that interest would be charged on the principal rather than on the unpaid balance. How much extra interest did the company pay?

b. What is the nominal rate of return per year on an investment that increases in value by 8% every 3 months?

c. Assume you borrow $50,000 at 10% per year interest and you agree to repay the loan in fi ve equal annual payments. What is the amount of the unrecovered balance immediately after you make the third payment?

Reference no: EM13881759

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