Ask Question
18 August, 22:55

Williams Construction Inc. is building a new facility that will cost $45 million. Williams Construction will borrow $42 million from Wells Fargo bank and pay the remainder immediately as a down payment. Williams Construction will pay 8% interest but will make no payment for 4 years, at which time the entire amount will be due. How much will Williams Construction's payment be?

+2
Answers (1)
  1. 18 August, 23:19
    0
    Williams Construction's payment would be $57.4 million

    Explanation:

    According to the given data we have the followng:

    cost of new facility=$45 million

    money borrowed=$42 million

    interest rate=8%

    Therefore, to calculate the amount of Williams Construction's payment we would have to calculate the following formula:

    amount of Williams Construction's payment=P (1+r) ∧n

    amount of Williams Construction's payment=$42 million (1+0.08) ∧4

    amount of Williams Construction's payment=$57.4 million

    Williams Construction's payment would be $57.4 million
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Williams Construction Inc. is building a new facility that will cost $45 million. Williams Construction will borrow $42 million from Wells ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers