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Assume that you have just "run out of money" and are unable to move your "idea" from its development stage to production and the startup stage. However, you remain convinced that with a reasonable amount of additional financial capital you will be a successful entrepreneur. While your expectations are low, you are meeting with a loan officer of the local bank in the hope that you can get a personal loan in order to continue your venture.
A) As you are about to enter the bank, you see a bank money bag lying on the street. No one is around to claim the bag. What would you do?
B) Now let's assume that what you found lying on the street was a $100 bill. The thought crosses your mind that it would be nice to take your significant other out for a nice dinner- something that you have not had for several months. What would you do?
C) Now instead of $100 you find a $1 bill on the street. The thought crosses your mind that you could buy a lottery ticket with the dollar. Winning the lottery would certainly solve all your financing needs to start and run your venture. What would you do?
Using a spreadsheet program or a calculator, solve Tracy’s problem of how often to go to the ATM when the nominal interest rate on her bank account is 10 percent, she spends $30 ea
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