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Answered Same Day Dec 21, 2021

Solution

Robert answered on Dec 21 2021
130 Votes
Solution:
Amount = Principal + interest
2,000,000= P + P x 20% x 5
2,000,000 = 2P
P = 1,000,000
a) Amount = Principal (1 + 20%)5
2,000,000= Principal (1.20)5
Principal = 2,000,000/1.205 = 803,755.144
Solution:
Present worth = $150,000 (PVIFA @ 15%, 8) + 10,000 (P/G @ 15%, 8)
= 150,000 [(1.158 – 1)/ (1.15*1.158)] + 10,000 (12.4807)
= 150,000 (4.4873) + 10,000 (12.4807)
= $797,902
Solution:
Cash inflow = Income – expense
Year 0, cash inflow =...
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