Blue Angel Investors has a success ratio of 10% with its venture funding. Blue Angel requires a rate of return of 19.9% for its portfolio of​ lending, and the average length on its loans is 4 years. If you were to apply to Blue Angel for a ​$192,000 ​loan, what is the annual percentage rate you would have to pay for this​ loan?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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 Blue Angel Investors has a success ratio of
10%
with its venture funding. Blue Angel requires a rate of return of
19.9%
for its portfolio of​ lending, and the average length on its loans is
4
years. If you were to apply to Blue Angel for a
​$192,000
​loan, what is the annual percentage rate you would have to pay for this​ loan?
 
 

 

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