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dezoksy [38]
3 years ago
6

BUS 320 Cal Lury owes $21,000 now. A lender will carry the debt for five more years at 6 percent interest. That is, in this part

icular case, the amount owed will go up by 6 percent per year for five years. The lender then will require that Cal pay off the loan over the next 13 years at 9 percent interest. What will his annual payment be
Business
1 answer:
Ipatiy [6.2K]3 years ago
4 0

Answer:

$3,753.59

Explanation:

Value of debt at end of 5 years = $21,000 * (1 + 6%)^5

Value of debt at end of 5 years = $21,000 * 1.3382255776

Value of debt at end of 5 years = $28102.7371296

Value of debt at end of 5 years = $28,102.74

Let x be the annual payments:

x*[1 - (1 + 9%)^-13] / 9% = $28,102.74

x * [1-0.32617864688] / 0.09 = $28,102.74

x * 7.486904 = $28,102.74

x = $28,102.74 / 7.486904

x = 3753.58626

x = $3,753.59

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$162

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As we know that

1 square feet = 0.1 square yard

which means

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Liabilities are any money owed to your enterprise, whether or not it's financial institution loans, mortgages, unpaid bills, IOUs, or some other amount of money that you owe someone else. if you've promised to pay a person an amount of cash within the future and have not paid them but, that is a liability.

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