Slopes R Us needs to borrow $ 120 , 000 to increase its inventory of ski equipment for the upcoming season. The owner is confident that she will sell most, if not all, of the new inventory during the winter, so she wishes to borrow the money for only five months. Her bank has offered her a simple interest amortized loan at 8 7 8 % interest. a. Find the size of the monthly bank payment. b. Prepare an amortization schedule for all five months of the loan.
Slopes R Us needs to borrow $ 120 , 000 to increase its inventory of ski equipment for the upcoming season. The owner is confident that she will sell most, if not all, of the new inventory during the winter, so she wishes to borrow the money for only five months. Her bank has offered her a simple interest amortized loan at 8 7 8 % interest. a. Find the size of the monthly bank payment. b. Prepare an amortization schedule for all five months of the loan.
Solution Summary: The author explains how to find the size of monthly bank payment of loan amount 120,000, rate of interest 878%, and term 5months.
Slopes R Us needs to borrow
$
120
,
000
to increase its inventory of ski equipment for the upcoming season. The owner is confident that she will sell most, if not all, of the new inventory during the winter, so she wishes to borrow the money for only five months. Her bank has offered her a simple interest amortized loan at
8
7
8
%
interest.
a. Find the size of the monthly bank payment.
b. Prepare an amortization schedule for all five months of the loan.
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