3) Suppose you wish to start up a new business that specializes in the latest impossible...
3) Suppose you wish to start up a new business that specializes in the latest impossible meat trends. To produce and market your product, you need to borrow $100,000. Because it strikes you as unlikely this particular fad will be long-lived, you propose to pay off the loan quickly by making five equal annual payments. If the interest rate is 18%, what will the annual payment amount be?
Homework Answers
Annual Payment = Loan / PVAF(r%, n)
= $ 100,000 / PVAF (18%, 5)
= $ 100,000 / 3.1272
= $ 31,977.78
Annual Payment is $ 31,977.78
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3) Suppose you wish to start up a new business that specializes
in the latest impossible...
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