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You buy a machine worth $200,000 and finance it with a debt/equity ratio of 3. The debt is in the form of a term loan.
You buy a machine worth $200,000 and finance it with a debt/equity ratio of 3. The debt is in the form of a term loan. You need to make equal annual payments of $30,080 for the next 8 years in order to fully repay the term loan. What is the interest rate on the loan?
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Total cost 200000 debt equity 31 therefore debt 150000 and equity 50000 ...
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Algebra and Trigonometry
Authors: Ron Larson
10th edition
9781337514255, 1337271179, 133751425X, 978-1337271172
