Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

BioElectroMechanical systems is a startup company with high potential and little available cash. They obtain $500000 for necessary technology from a venture capitalist who charges

BioElectroMechanical systems is a startup company with high potential and little available cash. They obtain $500000 for necessary technology from a venture capitalist who charges the 10% compounded monthly. The agreement calls for no payment until the end of the first month of the 4th year with equal monthly payments thereafter for 3 complete years (36 payments)

a. What is the cash flow diagram?

b. How much are the monthly payments?

c. How much of the 25th payment is interest amount?

d. If BEMS is doing incredibly well and would like to pay off the debt immediately after making the 15th payment in the 51th month, how much must they pay? image text in transcribed

This Question: 8 pts BieElectroMechanical Systems (BEMS) s a statup company with high potential and ide available cash They obtain $500,000 for necessary technology from a venture captalist who charges them 10 % compounded monthly The agreament calls for no payment until the end of the first month of the 4th year with equal monthily payments thereafter for 3 complete years (36 payments) According to this information answer Questions (a), (b). (c), and (d). 37 72 A ? (b) How much are the monthly payments? The monthly payments are S23755 (Round your answer to the nearest dollar) (c) How much of the 25th payment is interest amount? The interest amount of the 25th payment is (Round your answer to the nearest dollar (4) BEMS is doing incredibly well and would lke to pay off the debt immediately aher making the 15th payment in the 51th month how much must they pay? They must pay S (Round your answer to the nearest dollar)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Modeling

Authors: Simon Benninga, Tal Mofkadi

5th Edition

0262046423, 9780253337825

More Books

Students also viewed these Finance questions

Question

Use synthetic division to divide. 3x5x4 84x 12x + 3 x - 3

Answered: 1 week ago