4. Your cousin is entering medical school next fall and asks you for financial help. He needs $75,000 each year for the first two years (paid at the beginning of each year). After that, he is in residency for two years and will be able to pay you back $10,000 each year.
Then he graduates and becomes a fully qualified doctor, and will be able to pay you $40,000 each year. He promises to pay you $40,000 for 5 years after he graduates. The repayments all happen at the end of each year. Are you taking a financial loss or gain by helping him out? Assume that the interest rate is 5% and that there is no risk of him breaking his promise. Get Finance homework help today
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