Question
Present Value of Multiple Annuities A small business owner visits his bank to ask for a loan. The owner states that he can repay a
Present Value of Multiple Annuities A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $2,000 per month for the next three years and then $3,000 per month for the two years after that. If the bank is charging customers 6.50 percent APR, how much would it be willing to lend the business owner?
A. $120,699
B. $10,140
C. $156,000
D. $153,326
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Finance Operations
Authors: Charles Finley
1st Edition
1491292423, 978-1491292426
