Question

A small business owner visits her bank to ask for a loan. The owner states that...

A small business owner visits her bank to ask for a loan. The owner states that she can repay a loan at $1,000 per month for the next three years and then $2,000 per month for two years after that. If the bank is charging customers 7.5 percent APR, how much would it be willing to lend the business owner? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A small business owner visits her bank to ask for a loan. The owner states that...
A small business owner visits her bank to ask for a loan. The owner states that she can repay a loan at $900 per month for the next two years and then $1,800 per month for three years after that. If the bank is charging customers 8.5 percent APR, how much would it be willing to lend the business owner? (Round your answer to two decimal places.)
A small business owner visits his bank to ask for a loan. The owner states that...
A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $3,000 per month for the next three years and then $2,000 per month for two years after that. If the bank is charging customers 9.75 percent APR, how much would it be willing to lend the business owner? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Present Value of Multiple Annuities A small business owner visits his bank to ask for a...
Present Value of Multiple Annuities A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $2,400 per month for the next three years and then $3,400 per month for the two years after that. If the bank is charging customers 7.50 percent APR, how much would it be willing to lend the business owner?
Problem 5-24 Present Value of Multiple Annuities (LG5-4) A small business owner visits his bank to...
Problem 5-24 Present Value of Multiple Annuities (LG5-4) A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $2,200 per month for the next three years and then $1,200 per month for two years after that. If the bank is charging customers 10.25 percent APR, how much would it be willing to lend the business owner? (Do not round intermediate calculations and round your final answer to 2...
Problem A small business owner visits his bank to ask for a loan. the owner can...
Problem A small business owner visits his bank to ask for a loan. the owner can repay the loan at $2800 a month for 3 years, then $1800 a month for 2 years. The bank is charging 9.25% How much would the bank lend this business?
The owner of a small business borrowed $137548 with an agreement to repay the loan with...
The owner of a small business borrowed $137548 with an agreement to repay the loan with quarterly payments over a 5 year time period. If the interest rate is 12% per year compounded quarterly, his loan payment each quarter is equal to:
Kyra borrowed $9,500 for 3 ½ years from a family member to finance her small business....
Kyra borrowed $9,500 for 3 ½ years from a family member to finance her small business. The loan carries interest at 6% compounded quarterly for the first 1 ½ years, increasing to 8% compounded quarterly for the subsequent 2 years. What amount will be required to fully repay the debt if no payments were made before the expiry of the 3 ½ year term? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
A business owner arranges for a start up loan for $163100 where the first payment will...
A business owner arranges for a start up loan for $163100 where the first payment will be deferred for 2 years. After that he will make equal payments for 2 more years until the loan is paid off. The bank is charging him 7% per year compounded monthly. a. How much will he owe at the end of two years? $   b. How much of his ballance at the end of two years represents unpaid interest? $   c. What are...
Goldstein Bank offers a special low interest loan program for small business owners. The rate is...
Goldstein Bank offers a special low interest loan program for small business owners. The rate is fixed for all loans made under this program, but the bank has the discretion whether or not to approve this type of loan. Joan, a loan officer at the Bank, is reviewing an application under this program from Jim, a small business owner. If Jim repays the loan as per the terms of the loan, the Bank will earn a profit of $15,000. (All...
In order to start a coffee business, the Manager took a 300K loan from the bank....
In order to start a coffee business, the Manager took a 300K loan from the bank. He/she will have to pay 10K monthly for three years. a-Calculate the effective interest rate (per year). SOLVE BY HAND NOT SPREADSHEET b-If the coffee business makes a Revenue=19K/month and has an operational cost of 12K/Month, Calculate the PW if the study period is 5 years and the MARR is equal to 1.5% per month. Solve by either Spreadsheet or Hand, Please Specify in...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT