Ernie Bilko has a business idea. He wants to rent an abandoned gas station for just the month of November and December. He will convert the gas station into a drive-through Christmas wrapping station. Customers will drive in, drop off their gifts, return the next day, and pick up their wrapped gifts. He needs $ 338 , 200 to rent the gas station, purchase wrapping paper hire workers, and advertise. If he borrows this amount at 6 1 2 % interest for those two months, what size lump sum payment will he have to make to pay off the loan?
Ernie Bilko has a business idea. He wants to rent an abandoned gas station for just the month of November and December. He will convert the gas station into a drive-through Christmas wrapping station. Customers will drive in, drop off their gifts, return the next day, and pick up their wrapped gifts. He needs $ 338 , 200 to rent the gas station, purchase wrapping paper hire workers, and advertise. If he borrows this amount at 6 1 2 % interest for those two months, what size lump sum payment will he have to make to pay off the loan?
Solution Summary: The author calculates the future value of the loan amount 338,200 borrowed for two months at interest rate of 612%
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