1. $150000 was borrowed at 8% per year. Annual end of year payments of $14700 will be made. When this loan is paid off, what will be the amount of the last payment? The answer should be 288.10.
2. When determining the real interest rate, what happens to businesses that find themselves with unfunded capital projects whose rate of return exceeds the firms’ cost of capital?
3. Shareholder, bondholder, amd management interests are not the same. Explain how they are different.