Question: Consider a construction loan made to ABC Inc.The loan amount is$6million,which is drawn evenly(i.e.,a$1,000,000monthly draw)forthe next six months.Assume that each disbursement occurs at the end

Consider a construction loan made to ABC Inc.The loan amount is$6million,which is drawn evenly(i.e.,a$1,000,000monthly draw)forthe next six months.Assume that each disbursement occurs at the end of the month.The annual interest rate is8%for theconstruction loan.What is roughly thetotal loan amount(including interest)required to finance this project?

A.	$6,302,560
B.	$6,100,893
C.	6,032,250
D.	$6,345,810

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

FINA 7003 Financial Planning Assignment Rachel Ebbett is the controller for New Age Battery Manufacturing [NABMJ and she has been asked by her CFO to prepare the company's nancial plan for the next...

Consider a construction loan made to ABC Inc. The loan amount is $6 million, which is drawn evenly (i.e., a $1,000,000 monthly draw) forthe next six months. Assume that each disbursement occurs at...

VIEW THE STEP-BY-STEP SOLUTION TO: Title: ABC Appliance Inherent Risk and Control Design Assessment Prepare Inherent Risks and Control Design Assessment. This course project/case... I.Title: ABC...

i am taking Cooperate finance which is FIN222 can help me to answer.. ? Tutorial 1 Topic 1 Chapter 1 4. What are the main advantages and disadvantages of organising a firm as a corporation? 6. You...

Southfork Development Co. Southfork plans to develop, and then own and operate, Rolling Meadows for a long period of time. Rolling Meadows Center is a high-quality shopping center development located...

Give Excel step by step solutions to these questions Question 1 pts Construction Loan Request Now, let's consider a construction loan request. Table 2 contains a breakdown of the loan request. Note...

Amortization Schedules This project requires you to create an amortization schedule for two types of loans, a fully amortizing constant payment mortgage (CPM) loan and a constant amortizing (CAM)...

all parts please Amortization Schedules This project requires you to create an amortization schedule for two types of loans, a fully amortizing constant payment mortgage (CPM) loan and a constant...

Amortization Schedules This project requires you to elaborate an amortization schedule for two types of loans, a fully amortizing constant payment mortgage (CPM) loan and a constant amortizing (CAM)...

For the reaction, shown below, determine which statements are True and which are False . 3Fe(s) + Cr 2 O 7 2- (aq) +14H + (aq) 3Fe 2+ (aq) + 2Cr 3+ (aq) + 7H 2 O(l) o =1.77V True False The...

An auditor's purpose for performing tests of controls is to provide reasonable assurance that: Multiple Choice Controls are operating effectively. The risk that the auditor may unknowingly fail to...

What does the balance sheet of a construction company represent? A detailed summary of all revenue and expenses for a specific project A record of all cash inflows and outflows over a period of time...

The two-wire lines shown in the figure below are lossless and have Z o =200 . Find d and shorted possible value for d 1 to provide a matched load if = 80 cm. Find the standing wave ratio for each of...

*3.21. At 100 C 200 g of mercury are added to 80 g of water at 20 C in a vessel that has a water equivalent of 20 g. The specific heat capacities of water and mercury -i may be taken as constant at...

Show that the equation Xn+1 = Xn + rXn - Xn * has a pitchfork bifurcation for x = 0 at r

After a year or so of adequate training, VO2Max reaches a plateau and does not increase further. However, additional training can allow the person to exercise at a higher percentage of their VO2Max,...

Create a 200 word summary on the Juvenile Justice System than and today. Describe The Juvenile system and provide a generalizable definition. Highlight the issues in the Juvenile system and why this...

Identify sustainable marketing strategies and the role that E-marketing is involved with. LO2

Describe market segmentation and the role of marketing managers. LO5

Apply these concepts to the earlier chapters in the text. LO4