A broadband service company borrowed $2 million for new equipment and repaid the principal of the loan plus $275,000 interest after 1 year. What was the interest rate on the loan?
A publicly traded construction company reported that it just paid off a loan that it received 1 year earlier. If the total amount of money the company paid was $1.6 million and the interest rate on the loan was 10% per year, how much money did the company borrow 1 year ago?
At an interest rate of 8% per year, $10,000 today is equivalent to how much (a) 1 year from now and (b) 1 year ago?
A company that manufactures regenerative thermal oxidizers made an investment 10 years ago that is now worth $1,300,000. How much was the initial investment at an interest rate of 15% per year (a) simple interest and (b) compound interest?
A company that manufactures in-line mixers for bulk manufacturing is considering borrowing $1.75 million to update a production line. If it borrows the money now, it can do so at an interest rate of 7.5% per year simple interest for 5 years. If it borrows next year, the interest rate will be 8% per year compound interest, but it will be for only 4 years.
(a) How much interest (total) will be paid under each scenario, and
(b) should the company borrow now or 1 year from now? Assume the total amount due will be paid when the loan is due in either case.