Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Cindy wants to buy a health food company. She can sell $20,000 in stock to a friend. The Shark Tank venture capitalists will loan her
Cindy wants to buy a health food company. She can sell $20,000 in stock to a friend. The Shark Tank venture capitalists will loan her money at 8% for 10 years with annual payments. The most Cindy can afford is $25,000 a year in payments. The sale price for the company is $188,250. Can Cindy afford to buy the company?
Yes; she will have exactly $188,250 | ||
No; she will have about $167,752 | ||
No; she will have about $187,752 | ||
Yes, she will have just over $188,752 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started