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Compute a dollar-year measure of the amount owed for the four loan patterns in Exhibit 2.9. For example, the business loan has $1000 owed for the ?rst year for 1000 dollar-years. For the second year, $1100 is owed, so this year has 1100 dollar-years for a cumu- lative total of 2100 dollar-years. Continue through 5 years. Then, divide the sum of the interest paid over the 5 years by the total dollar-year measure of the amount owed. What is the result?

Reference no: EM131003091

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