Answer:
0.222
Step-by-step explanation:
Answer:
Interest Rate on 2-Year Loan...$435.6
Interest Rate on 5-Year Loan...$1,452
Step-by-step explanation:
The formula for calculating simple interest is as follows.
I = P x R x T,
where I = interest
P= Principal
R= interest rate
T= time
For the loan at 4.5 percent for 2 years, the interest will be
= $4,840 x 4.5/100 x 2
= $4,840 x 0.045 x 2
= $435.6
Total cost of the loan will principal plus interest
=$435.6 + $4,840
=$5,275.6
Monthly loan cost
= $5,275.6/24
=$219.81
Total loan cost..$5,275.6
Monthly loan cost ...$219.81
For the Loan at 6 percent for 5 years, the interest will be
= $4,840 x 6/100 x 5
= $4,840 x 0.06 x 5
=$1,452
Total cost of the loan will be principal plus interest
=$ 4,840 + $1,45
=$6,292
Monthly costs will be
=$6,292/60
=$104.87
Total loan cost... $6,292
Monthly loan costs... $104.87
r=98600/30 $/day
r=9860/3
debt=1200000-98600
d=1101400
Debt=r•days
1101400=9860/3•(days)
335.1=days
336 days because you can't have a partial day and 335 days would leave $367 of debt still.
It would take the company 336 more days to earn back it's investment.
