Use the following chart to explain how the interest rate affects the total cost of the loan.
loan repayment period
loan 1
loan 2
principal
$5,000 $5,000
6.47 percent 10.8 percent
interest rate
monthly payment
$98
$108
loan repayment period five years
five years
total cost of the loan
$5,866
$6,493

Mr. pines is considering buying a house and renting it to students. the yearly operating costs are $1,900. the house can be sold for $175,000 at the end of 10 years and it is considered 18% to be a suitable annual effective interest rate. if the house costs $100,000 to purchase, how much would you need to charge your tenants each year in rent? (assume a single payment for the years rent at the end of each year)

For the year, uptowne furniture had sales of $818,790, costs of $748,330, and interest paid of $24,450. the depreciation expense was $56,100 and the tax rate was 34 percent. at the beginning of the year, the firm had retained earnings of $172,270 and common stock of $260,000. at the end of the year, retained earnings was $158,713 and common stock was $280,000. any tax losses can be used. what is the amount of the dividends paid for the year? a. $6,466 b. $7,566 c. $5,266 d. $6,898 e. $7,066

Describe a least two factors that a lender would consider if you applied for a business loan.