On May 1, 2014, Kaam Ya'tak invests $40,000 of their own money in a new venture....

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On May 1, 2014, Kaam Ya'tak invests $40,000 of their own money in a new venture. To further help finance the venture, Kaam Ya'tak borrows $85,000 from a bank. The loan term is ten years, at which point the venture must repay the loan in full. Two years after starting the venture, the venture is valued at $72,250. What is Kaam Ya'tak's equity stake worth on this date? On May 1, 2014, Kaam Ya'tak invests $40,000 of their own money in a new venture. To further help finance the venture, Kaam Ya'tak borrows $85,000 from a bank. The loan term is ten years, at which point the venture must repay the loan in full. Two years after starting the venture, the venture is valued at $72,250. What is Kaam Ya'tak's equity stake worth on this date?

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Kaam Yataks equity stake can be calculated as the difference between the total value of the venture ... View the full answer