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bogdanovich [222]
3 years ago
8

The owner of a flower shop needs a short-term loan to tide her business over until she

Business
1 answer:
lisov135 [29]3 years ago
6 0

Answer:

$4,541.67 per month.

Explanation:

From the question above, we see that the interest rate is 18%, therefore:

0.18 X 25,000 = 4,500 interest for one year.

But the loan is for 6months, that's half a year, therefore we have:

4,500 / 2 = 2,250 will be paid as interest for 6months.

The total amount paid monthly will therefore be spread evenly over 6months thus:

(2,250 + 25,000) / 6 = $4,541.67 will be paid per month.

The florist can handle this loan because she wants to complete the sale of an unused property.

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