You are in desperate need of cash and turn to your uncle, who has offered to...

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You are in desperate need of cash and turn to your uncle, who has offered to lend you some money. You decide to borrow $1,500

business finance

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Answer 1

Answer #1

This question requires application of basic time value of money function, according to which FV = PV * (1 + r) where FV is F

$1710 = $1500 * (1 + r)²

1.14 = (1 + r)²

1.0677 = 1 + r

r = 0.066

r = 6.77%

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Answer 2

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