You borrow $2,000 from gougo’s, a well-known loan consolidation outfit. the loan is an "unbelievably low" 2.5% per month compounded monthly. you have 2 years to pay back the loan. a. what is the nominal interest rate? b. what is the effective interest rate? c. if you wait until the end of year 2 to pay it off in one lump sum, how much must you pay? use the "period interest rate" approach. d. if you wait until the end of year 2 to pay it off in one lump sum, how much must you pay? use the "effective interest rate" approach. e. of your payment in parts (c) or (d), how much is interest? f. suppose you make equal end-of-month payments. how much is the monthly amount?

For example, the upper right cell shows that if expresso advertises and beantown doesn't advertise, expresso will make a profit of $15 million, and beantown will make a profit of $2 million. assume this is a simultaneous game and that expresso and beantown are both profit-maximizing firms. if expresso decides to advertise, it will earn a profit of $ million if beantown advertises and a profit of $ million if beantown does not advertise. if expresso decides not to advertise, it will earn a profit of $ million if beantown advertises and a profit of $ million if beantown does not advertise. if beantown advertises, expresso makes a higher profit if it chooses . if beantown doesn't advertise, expresso makes a higher profit if it chooses . suppose that both firms start off not advertising. if the firms act independently, what strategies will they end up choosing? expresso will choose to advertise and beantown will choose not to advertise. expresso will choose not to advertise and beantown will choose to advertise. both firms will choose to advertise. both firms will choose not to advertise.