A Small Business Borrowed $80,000 for 8 Years at an Annual

question 112

Multiple Choice

A small business borrowed $80,000 for 8 years at an annual rate of 12%, compounded semiannually, in order to update some equipment. Find the payoff amount just after the company makes the 10th semiannual payment of $7,916.17. Round your answer to the nearest cent. ​

• A)$117,523.61
• B)$108,964.74
• C)$95,323.21
• D)$73,580.67
• E)$38,926.38

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Definitions:

Sales

The cumulative revenue generated through the sales of products or services during a designated timeframe.

Costs

The amount of money required to produce or acquire goods or services, including manufacturing, purchasing, and marketing expenses.

Taxes

Compulsory financial charges or levies imposed on individuals or entities by a governmental organization in order to fund public expenditures.

Accounts Payable

Obligations of a company to pay off short-term debts to its suppliers or creditors.