For Equipment Upgrades, a Business Borrowed $450,000 at an Annual

question 117

Multiple Choice

For equipment upgrades, a business borrowed $450,000 at an annual rate of 8%, compounded semiannually, for 7 years. What are the semiannual payments? Round your answer to the nearest cent. ​

• A)$18,000.00
• B)$21,085.71
• C)$42,601.04
• D)$27,005.84
• E)$336,897.48

---

Definitions:

Break-Even Analysis

A financial calculation that determines the point at which revenue received equals the costs associated with receiving the revenue, thereby resulting in neither a profit nor a loss.

Contribution Margin

Contribution margin is a financial metric that represents the difference between a company's sales revenue and variable costs, used to assess the profitability of individual products or services.

Profit Goal

A financial objective set by businesses that aims to achieve a specific amount of profit over a certain period of time.

Management By Objectives (MBO)

A strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed to by both management and employees.