Assume that a carpenter borrowed $2,000 to be paid off in a year to finance a machine

Question:

Assume that a carpenter borrowed $2,000 to be paid off in a year to finance a machine that would make him work faster. As a result, she is able to take on more projects and collect $400 more earnings in the first year, after paying off the principal of $2,000. However, there is a 15% rental fee (interest) on her loan, which she also has to pay off. What is the carpenter’s net earnings for the first year? (Round your response to the nearest dollar.)

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: