Your parents are going to loan you the start-up capital for your new business. If they loan you $2,500 and you have to pay back $50 per
month, how long will it take you to pay them back? If they decide
to charge 5% annual interest, how long will it take you to pay them
back if you’re still paying only $50 per month? If they are charging
5% annual interest, how much money will they be given when you
have finished paying off their loan?