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Cindy wants to buy a health food company. She can borrow $20,000 from friends at 8% interest for 10 years with annual payents. The Shark
Cindy wants to buy a health food company. She can borrow $20,000 from friends at 8% interest for 10 years with annual payents. The Shark Tank venture capitalists will loan her money at 8% for 10 years with annual payments. The most Cindy can afford is $20,000 a year in payments. The sale price for the company is $135,000. Can Cindy afford to buy the company?
Yes; she will have exactly $135,000 | ||
No; she will have about $134,199 | ||
No; she will have only about $105,319 | ||
Yes, she will have just over $135,692 |
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