Q2.6: Anika received a loan of $9,000 at 4.72% compounded semi-annually from a credit union to use as working capital for his business. He had to make semi-annual payments for a period of 5 years to settle the loan. a. Calculate the size of his payments. b. What was the total interest paid during the period? c. What was the interest portion of payment number 3? Kindly keep all the decimals for all the preocedures, DO NOT ROUND
Risk and return
Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.
Capital Asset Pricing Model
Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.
Q2.6: Anika received a loan of $9,000 at 4.72% compounded semi-annually from a credit union to use as working capital for his business. He had to make semi-annual payments for a period of 5 years to settle the loan.
a. Calculate the size of his payments.
b. What was the total interest paid during the period?
c. What was the interest portion of payment number 3?
Kindly keep all the decimals for all the preocedures, DO NOT ROUND
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