if a country has a $100 million debt and the interest rate on the debt is 5% and the debt is serviced each year, this would resu

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mr Goodwill [35]

1 year ago

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if a country has a $100 million debt and the interest rate on the debt is 5% and the debt is serviced each year, this would resu

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Business

1 answer:

Alenkasestr [34] · Answer 1 · 2024-02-21T16:55:13+03:00

This situation of country will lead them to pay interest payment of $5 million.

<h3 /><h3>What is debt and debt interest rate?</h3>

A debt is something that one party borrows from another, typically money. Many businesses and people utilize debt to finance significant expenditures that they would not normally be able to afford. An agreement to borrow money with the need that it be repaid at a later time, typically with interest, is known as a debt arrangement.

Debt Interest is the sum of the Corporation's net debt (defined as funded debt plus the average outstanding revolver balance as of the Original Issue Date in accordance with the Corporation's five-year business plan, net of cash) and the Corporation's minority interest value as of the Original Issue Date.

Learn more about debt interest here:

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