I need to borrow $5,000 for a car because it enables me to get a job as
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I need to borrow $5,000 for a car because it enables me to get a job as a traveling anvil seller. Larry the Loan Shark will loan me the $5,000 at an interest rate of 90%. Principle and interest are due in exactly 12 months. With the car, I will be able to earn $10,000 in extra income over the next 12 months. What is the net cash flow by taking out the loan?
Related Book For
Economics of Money, Banking and Financial Markets
ISBN: 978-0321598905
9th Edition
Authors: Frederic S. Mishkin
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