151 Venture capital required rate of return.

Blue Angel Investors has a success ratio of10%with its venture funding. Blue Angel requires a rate of return of21.8%for its portfolio oflending, and the average length on its loans is5years. If you were to apply to Blue Angel for a $126,000loan, what is the annual percentage rate you would have to pay for thisloan?

What is the annual percentage rate for theloan?(Round to four decimalplaces.)

152 Venture capital required rate of return.

Red Devil Investors has a success rate of one project for every four funded. Red Devil has an average loan period of3years and requires a portfolio return of26.5%. If you borrow from RedDevil, what is your annual cost ofcapital?

What is the annual cost ofcapital?(Round to four decimalplaces.)