The Green Growery Nursery needs to borrow $ 48 , 000 to increase its inventory for the upcoming summer season. The owner is confident that he will sell most, if not all, of the new plants during the summer, so he wishes to borrow the money for only four months. His bank has offered him a simple interest amortized loan at 9 1 4 % interest. a. Find the size of the monthly bank payment. b. Prepare an amortization schedule for all four months of the loan.
The Green Growery Nursery needs to borrow $ 48 , 000 to increase its inventory for the upcoming summer season. The owner is confident that he will sell most, if not all, of the new plants during the summer, so he wishes to borrow the money for only four months. His bank has offered him a simple interest amortized loan at 9 1 4 % interest. a. Find the size of the monthly bank payment. b. Prepare an amortization schedule for all four months of the loan.
Solution Summary: The author explains how to find the size of monthly bank payment of loan amount 48,000, rate of interest 914%, and term 4,232,14.
The Green Growery Nursery needs to borrow
$
48
,
000
to increase its inventory for the upcoming summer season. The owner is confident that he will sell most, if not all, of the new plants during the summer, so he wishes to borrow the money for only four months. His bank has offered him a simple interest amortized loan at
9
1
4
%
interest.
a. Find the size of the monthly bank payment.
b. Prepare an amortization schedule for all four months of the loan.
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