Question
Consider a construction loan made to ABC Inc. The loan amount is $6 million, which is drawn evenly (i.e., a $1,000,000 monthly draw) forthe next
Consider a construction loan made to ABC Inc. The loan amount is $6 million, which is drawn evenly (i.e., a $1,000,000 monthly draw) forthe next six months. Assume that each disbursement occurs at the end of the month. The annual interest rate is 8% for theconstruction loan. What is roughly thetotal loan amount (including interest payments) required to finance this project?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
13th edition
978-1285027371, 128502737X, 978-1133541141
