A friend of Seth’s who is a real estate developer needs to borrow $80,000 to finish development project. He is desperate for cash and offers Seth 18%, compounded monthly, for 2 ½ years. Find the future value of the loan using the future value liable. Does this loan meet Seth’s goals of low risk? How could he reduce the risk associated with this loan?
2 answers
can't figure this out please somebody help me i'm not good at math how do i do the calculations
Loan amount (PV) $80,000.00
Interest rate (compounded monthly) 18%
Years 2.50
Therefore, rate = 1.50%
n = 30.00
Future value of loan = $125,046.42
Interest rate (compounded monthly) 18%
Years 2.50
Therefore, rate = 1.50%
n = 30.00
Future value of loan = $125,046.42
1 answer