Annual year-end payments
Problem: Jim Rodriguez is borrowing $50,000 for his small business. If he pays equal annual installments for 5 years and 6% interest, what are his annual year-end payments?
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Jim Rodriguez is borrowing $50,000 for his small business. If he pays equal annual installments for 5 years and 6% interest, what are his annual year-end payments?
Now assume that the balancing item is debt and that no equity is to be issued. Prepare a completed pro forma balance sheet for 2004. What is the projected debt ratio for 2004?
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