Question: i just need the answer to the present value. A small business owner visits his bank to ask for a loan. The owner states that

i just need the answer to the present value.

A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $2,600 per month for the next three years and then $1,600 per month for two years after that. If the bank is charging customers 8.75 percent APR, how much would it be willing to lend the business owner? Note: Do not round intermediate calculations and round your final answer to 2 decimal places

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!

i need these finance Question one with work. need in 5 hrs. i will tip 25 What is the value in year 8 of a $1,900 cash flow made in year 5 if interest rates are 9 percent? What is the value in year...

a small business owner visits his bank to ask for a loan. the owner states that she can repay ... Question: A small business owner visits his bank to ask for a loan. The owner states that she can...

I need these 4 problems dine correctly from a expert in 4hours. will tip 15 What is the value in year 8 of a $1,900 cash flow made in year 5 if interest rates are 9 percent? What is the value in year...

A small business owner visits his bank to ask for a loanThe owner states that he can repay a loan at $2,100 per month for the next three years and then \$1,100 per month for two years after thatIf...

The answer I calculated was incorrect. 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...

1. Assume that you contribute $250 per month to a retirement plan for 25 years. Then you are able to increase the contribution to $450 per month for the next 25 years. Given an 7 percent interest...

A small business owner visits his bank to ask for a loan. The bank told him that he can start repaying the loan at the beginning of the third year. The owner states that he can repay a loan at $900...

A small business owner visits her bank to ask for a loan. The owner states that she can repay a loan at $1,900 per month for the next three years and then $3,800 per month for two years after that....

How do you solve? ? If you start making $100 monthly contributions today and continue them for ten years, what's their future value if the compounding rate is 10 percent APR? (Round your answer to...

A small business owner visits her bank to ask for a loan. The owner states that she can repay a loan at $2,600 per month for the next three years and then $5,200 per month for two years after that....

Ms. Sue Zim, a businesswoman, has purchased goods on credit to the value of R 500,000 from WoodPeckers (Pty) Ltd. The goods are delivered by WoodPeckers (Pty) Ltd to Ms. Zim, and a copy of the...

Explain the difference between a data flow diagram and a use case diagram. Explain how they are different in terms of construction and use.

Outline the factors that affect the level of demand for a product.

P-1) (100 Pts.) A chemical manufacturing company (CMC) has a contract for the procurement of the neccssaly chemicals from four suppliers. The chemicals purchased from Supplier A are priced at $20...

Compare the Building Society job statement with a conventional job description. In what ways does it differ and how valuable might it prove for the employee?

How would you best sell the human resources function to the rest of the organisation?

Read the section on technology and draw up a list of advantages and disadvantages of using social media in the recruitment process.