Korey is planning to open a comic book store. He has developed the following expense breakdown for set-up and operation for the
first year. Korey has $8,500 in savings and $25,000 in inheritance money to use to open his store. If Korey doesn’t make any changes to his initial expenses, what percent of the total set-up and operation expense will have to be funded through loans or investors?
The total amount of cash money that Korey have is the summation of his savings and his inheritance which is equal to Korey cash = $8500 + $25,000. To identify the amount needed to be funded by loans or investors, we need to know first the total of expenses plus set-up plus operation expenses and other expenses to operate the bookstore subtracted by his savings.
Thus, let "AL" be the amount needed through loans while letting "TE" for total expenses.
AL=TE-($8500+$25000) AL=TE-$33,500
This is the equation needed to determine the amount needed.
