Consider a construction loan made to abc inc. the loan amount is $6 million, which is drawn evenly (i. e., a $1,000,000 monthly draw) for the next six months. assume that each disbursement occurs at the end of the month. the annual interest rate is 8% for the construction loan. what is roughly the total loan amount (including interest) required to finance this project?
a. $6,302,560
b. $6,100,893
c. $6,032,250
d. $6,345,810

B. $6,100,893

Explanation:

To calculate the total loan amount (including interest) required to finance this project, we calculate the future value of every month disbursement and its interest occurred.

We can manually calculate FV of every disbursement then sum up 6 disbursement

FV1 = 1,000,000*(1+8%/12)^5 = 1,033,781

FV2 =1,000,000*(1+8%/12)^4 = 1,026,934

FV3 =1,000,000*(1+8%/12)^3 = 1,020,133

FV4= 1,000,000*(1+8%/12)^2 = 1,013,378

FV5=1,000,000*(1+8%/12)^1 = 1,006,667

FV6 =1,000,000

Total = $6,100,893

In excel, the formula is FV(rate per month,number of disbursement,amount of each disbursement)

=FV(8%/12,6,1000000) = $6,100,893

a recipe serves 8 people, and calls for 5 lbs of apples and 2 cups of flour. you want to prepare it for 24 people. divide 24 by 8 to get 3, and then multiply your ingredients by 3.

so for 24 people, you'll need 15 lbs of apples, and 6 cups of flour.

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.