Determine the amount of money a bank will loan to a developer who repays the loan by

Question:

Determine the amount of money a bank will loan to a developer who repays the loan by selling 7 view lots at $120,000 each two years from now.

Assume the bank’s interest rate is 10% per year.

Use

(a) the tabulated factor values in your book,

(b) TVM functions on a financial calculator, and

(c) built-in functions on a spreadsheet.

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Asim farooq

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