Question
Consider a construction loan made to ABC Inc.The loan amount is$6million,which is drawn evenly(i.e.,a$1,000,000monthly draw)forthe next six months.Assume that each disbursement occurs at the end
Consider a construction loan made to ABC Inc.The loan amount is$6million,which is drawn evenly(i.e.,a$1,000,000monthly draw)forthe next six months.Assume that each disbursement occurs at the end of the month.The annual interest rate is8%for theconstruction loan.What is roughly thetotal loan amount(including interest)required to finance this project?
| A. | $6,302,560 |
| B. | $6,100,893 |
| C. | 6,032,250 |
| D. | $6,345,810 |
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Fundamentals Of Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
13th Edition
1265553602, 978-1265553609
