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Anvil Inc. borrows $10,000 from Star Bank and agrees to repay the loan as a lump sum in five years. The payment will include both
Anvil Inc. borrows $10,000 from Star Bank and agrees to repay the loan as a lump sum in five years. The payment will include both principal and 6% interest, compounded annually.
Calculate the amount that Anvil will pay to Star Bank when the loan matures in five years. Do not use decimals in your answer.
Use the time value of money factors posted below to answer this question.
Future Value of a Lump-Sum |
Rate of interest per period in percent | ||||||||||
Periods |
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