What is the present worth of the loan from the standpoint

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A Venture Capital (VC) firm borrows money at 12% APR compounded monthly and lends to its clients at 24% APR compounded monthly. They receive monthly payments from their clients. The VC firm lends $500,000 to a client on a 2 year loan.

Question a) Show the cash ?ow diagram from the standpoint of the client.

Question b) What is the monthly payment made by the client?

Question c) What is the total interest paid by the client?

Question d) Show the cash ?ow diagram from the standpoint of the VC firm.

Question e) What is the Present Worth of the loan from the standpoint of the VC Firm?

Reference no: EM132791179

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