1. What is the relationship between the time value of money and inflation? 2. Compare simple interest to compound interest. 3. What are the advantages and disadvantages of a fixed principal, fixed interest loan? 4. What is the purpose of a bridge loan? 5. Distinguish between bank discount and simple interest. 6. Differentiate between a stated rate of interest and an effective rate of interest. 7. What is the significance of finding the internal rate of return (IRR)? 8. Jill Kramer borrowed $25,000 to pay for a startup business. Jill must repay the loan at the end of five months in one payment with a 6 percent simple interest rate. What is the total amount that Jill must repay in five months? How much interest does Jill repay? 9. Joe Jones went to his bank to find out
1. What is the relationship between the
2. Compare simple interest to compound interest.
3. What are the advantages and disadvantages of a fixed principal, fixed interest loan?
4. What is the purpose of a bridge loan?
5. Distinguish between bank discount and simple interest.
6. Differentiate between a stated rate of interest and an effective rate of interest.
7. What is the significance of finding the
8. Jill Kramer borrowed $25,000 to pay for a startup business. Jill must repay the loan at the end of five months
in one payment with a 6 percent simple interest rate.
What is the total amount that Jill must repay in five months?
How much interest does Jill repay?
9. Joe Jones went to his bank to find out how long it will take for $1,000 to amount to $1,350 at 9 percent
simple interest. Solve Joe's problem.
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