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TEACHER ANSWER KEY
$1,000 Loan -- Interest Rate Scenarios
| Loan Amount |
Interest Rate |
Interest Amount |
Total Repayment Amount |
Monthly Installment for One Year |
| $1,000 |
0% |
$0 |
$1,000 |
$83.33 |
| $1,000 |
3.5% |
$35 |
$1,035 |
$86.25 |
| $1,000 |
5.0% |
$50 |
$1,050 |
$87.50 |
| $1,000 |
7.5% |
$75 |
$1,075 |
$89.58 |
| $1,000 |
10% |
$100 |
$1,100 |
$91.67 |
| $1,000 |
15% |
$150 |
$1,150 |
$95.83 |
| $1,000 |
25% |
$250 |
$1,250 |
$104.17 |
Possible Business Loans:
| Loan |
Loan Amount |
Interest Rate |
Interest Amount |
Total Repayment Amount |
Monthly Installment for One Year |
| A |
$15,000 |
4.0% |
$600 |
$15,600 |
$1,300.00 |
| B |
$15,000 |
6.5% |
$975 |
$15,975 |
$1,331.25 |
| C |
$25,000 |
7.5% |
$1,875 |
$26,875 |
$2,239.58 |
| D |
$25,000 |
8.50 |
$2,000 |
$27,000 |
$2,250.00 |
| E |
$100,000 |
5.0% |
$5,000 |
$105,000 |
$8,750.00 |
| F |
$100,000 |
9.5% |
$9,500 |
$109,500 |
$9,125.00 |
COMPANY CARD ANSWERS
Jodie's Coffees and Teas
Potential Loans: A or B; Final Choice: A
Automotive Design and Parts
Potential Loans: C or D; Final Choice: C
Journey Travel Agency
Potential Loans: E or F; Final Choice: E
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