The owners of a successful restaurant want a loan for $50,000 to renovate the kitchen and expand the dining room. they expect that the extra tables will add between $2,000 and $5,000 to the restaurant's monthly revenue. the bank is willing to let the business have an intermediate-term loan of $50,000 for five years at an interest rate of 6.5 percent. calculate the monthly payment and explain whether taking this loan is a smart business decision.

Question

Kenya Wallace

24 August, 04:31

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Justice Travis · Answer 1

Yes it is a smart decision because the monthly payment for 50000 is $887 but with expected revenue of $2000 that is a profit of $1113 a month.