Question

An aerospace engineering company borrowed $100,000 from the bank to get their company started. The company promised to pay a monthly payment of $500 to pay off the loan. The company could potentially turn profits of $20,000 a month. How long will it take the company to make $200000? *

Answer 1

Answer:

Explanation:

aerospace engineering company borrowed $100,000 from the bank to get their company started. The company promised to pay a monthly payment of $500 to pay off the loan. The company could potentially turn profits of $20,000 a month. How long will it take the company to make $200000?

Amount borrowed = $100,000

Monthly repayment = $500

Monthly profit = $20,000

How long it'll take company to make $200,000

Since the company pays back $500 monthly, then net profit per month will be :

$20,000 - $500 = $19500

How long it'll take to make $200,000

Projected profit / net profit per month

$200,000 / $19500

= 10.256410

= about 10 months