You get a loan of $10,000 for your startup today. You are expected to pay 24 equal monthly installments ($A per month) at APR 12%, compounded monthly, starting from a month from today. At the end of the first year, bank offers you a new deal. If you pay an additional $800 at the time of your 12th payment, you will only have to make 10 more payments of $A instead of 12 more payments.

a. Would you take this deal if you do not have $800 at the time of the 12th payment and you would have to borrow it at APR %12?

b. Would you take the deal if you have $800 at the time of the 12th payment and also have a separate investment opportunity that pays 2% per month?

c. Given that you are facing the case under part (b), what is the IRR of taking the $800 deal that the bank offers?