Blue Angel Investors has a success ratio of 10% with its venture funding. Blue Angel requires a rate of return of 19.9% for its portfolio of lending, and the average length on its loans is 4 years. If you were to apply to Blue Angel for a $192,000 loan, what is the annual percentage rate you would have to pay for this loan?

Blue Angel Investors has a success ratio of 10% with its venture funding. Blue Angel requires a rate of return of 19.9% for its portfolio of lending, and the average length on its loans is 4 years. If you were to apply to Blue Angel for a $192,000 loan, what is the annual percentage rate you would have to pay for this loan?

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter13: Other Financing Alternatives

Section: Chapter Questions

Problem 1bM

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