A fishing pond entrepreneur has a plan to build and needs money through a loan with a bank interest of 10%/year. Borrowed money now $1740, year 2 $ 1392 and in the fourth year $1950. A.)How much money must be paid if the payment is made in the 6th year. B.) How much money must be paid annually, if payments are made annually for 10 years
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.
A fishing pond entrepreneur has a plan to build and needs money through a loan with a bank interest of 10%/year. Borrowed money now $1740, year 2 $ 1392 and in the fourth year $1950. A.)How much money must be paid if the payment is made in the 6th year. B.) How much money must be paid annually, if payments are made annually for 10 years
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