Z NUMBER S Question 11 of 30 irm takes out a 500000 loan to

Z NUMBER S Question 11 (of 30 irm takes out a $500000 loan to expand its plant. The loan has an annual interest rote of 7 percent Whet would be What would be-total compounded iter?ontebanetthe end of ive year principalt? O $175,000 O $35,075 O $150,750 $201,275

Solution

Loan amount 500000 Annuity Future value for 5 yrs at 7% 1.40255 Future value of loan amount 701275 Less: Loan amount 500000 Total Interest amount paid. 201275 Answer is $ 201275