An entrepreneur needs thousand of dollars to launch the global expansion of his software business. I...
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An entrepreneur needs thousand of dollars to launch the global expansion of his software business. I have agreed to lend him the money today (n=0) at an interest rate of 15% compounded continuously. I required that the loan be repaid in eight annual payments starting at Year 3 with a $20K payment. Subsequent payments will decrease by $1K each year thereafter. (1) What is the present value of the money being borrowed? (2) Convert your Present Value to Annual Payment. Answer: ieff = Blank 1 show in four decimal POTotal = S Blank 2 A/POTotal = S Blank 3 Note: Do not round ia between solution. No need to put UOM and comma. Final answer round to the nearest WHOLE NUMBER. Blank 1 Add your answer Blank 2 Add your answer Blank 3 Add your answer An entrepreneur needs thousand of dollars to launch the global expansion of his software business. I have agreed to lend him the money today (n=0) at an interest rate of 15% compounded continuously. I required that the loan be repaid in eight annual payments starting at Year 3 with a $20K payment. Subsequent payments will decrease by $1K each year thereafter. (1) What is the present value of the money being borrowed? (2) Convert your Present Value to Annual Payment. Answer: ieff = Blank 1 show in four decimal POTotal = S Blank 2 A/POTotal = S Blank 3 Note: Do not round ia between solution. No need to put UOM and comma. Final answer round to the nearest WHOLE NUMBER. Blank 1 Add your answer Blank 2 Add your answer Blank 3 Add your answer
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Answer rating: 100% (QA)
Answer Effective annual interest rate ieff e 1 Where e 2718 and i given interest ra... View the full answer
Related Book For
College Mathematics for Business Economics Life Sciences and Social Sciences
ISBN: 978-0321614001
12th edition
Authors: Raymond A. Barnett, Michael R. Ziegler, Karl E. Byleen
Posted Date:
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