Tesla Inc. is launching a new production line to manufacture their new EV battery technology. Research and
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Question:
To finance this new production line, a bank will loan Tesla Inc. the money at an interest rate of 9.99%, compounded monthly.
PART A:
What is the interest rate per month that Tesla Inc. is paying? What is the nominal annual interest rate? What is the effective annual interest rate?
Solve the problem in EXCEL using simple calculations and an EXCEL spreadsheet function.
PART B:
Create a cash flow diagram in EXCEL as a stacked column chart to represent the situation above. Make sure to label chart title, point-of-view, interest rate per period, time units, receipts and disbursements, axis labels with units, and data labels, as well as list any assumptions you might have (if needed).
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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