Question

You have recently found a location for your bakery and have begun implementing the first phases of your business plan. Your budget consists of an $80,000 loan from your family and a $38,250 small business loan. These loans must be repaid in full within 10 years. What integer would represent your total budget?

Answer 1

Answer:

$118250

Explanation:

You have $118250 at your disposal to spend; regardless of it being a loan or not.

Cheers

Answer 2

Answer:

$118,250

Explanation:

An integer is a fancy synonym for number, so we are asked to determine the total budget of this project = $80,000 + $38,250 = $118,250

When you are preparing a budget or evaluating a project, all that matters are cash flows. It doesn't matter if the you saved the money in a bank, your girlfriend lent it to you or your grandmother gave it as a gift, what matters is the total amount that you can invest in the business.