Martinez Furniture Company started construction of a combination office and warehouse building for its own use at an estimated c
ost of $7,500,000 on January 1, 2020. Martinez expected to complete the building by December 31, 2020. Martinez has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semi-annually, issued December 31, 2019, $3,000,000 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021, 2,100,000 Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 1,500,000
Compute the avoidable interest on this project.
Compute the avoidable interest on this project.
1 answer:
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Answer:
Attached image is the plotted and labeled graph.
Explanation:
- Bundle values are:
A. (9,1)
B. (3,7)
C. (4,0)
D. (8,8)
E. (6,5)
- Count over on the x-axis then count up on the y-axis.
- Start marking the values of y-axis above the x-axis on the graph.
