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Venture capital required rate of return blue angel investors has a success rate of 10% with his venture funding blue angel requires a rate of 20.5% for portfolio lending the average link on his loan is four years if you were to apply to blue angel for $181,000 loan what is the annual percentage rate you would have to pay for this alone

e section Summer 2020 colin davis & 07/2120 12:27 PM Homework: Chapter 15 Homework Save Score: 0 of 1 pt 1 of 100 complete HW
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Answer #1

Blue angel will have to make 10 loans of $181,000 to be successful.

Future value after 4 years = 181,000 *10 * (1+20.5%)^ 4= 3,816,161.65

Annual percentage = (3,816,161.65 /181000) ^1/4 -1 = 114.2827%

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