Answered: he company will pay $2,000 per month to…

he company will pay $2,000 per month to repay the loan. The bank will charge .75% est per month on the unpaid balance. How long will it take Allegheny to amortize the 63 months v

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 14P

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Concept explainers

Calculating the Return On A Loan

Question

2.61. Allegheny Company has borrowed $100,000 from a bank with the understanding
that the company will pay $2,000 per month to repay the loan. The bank will charge .75%
interest
per
month on the unpaid balance. How long will it take Allegheny to amortize the
loan?
63 months v

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