Answer:
Step-by-step explanation:
aerospace engineering company borrowed $100,000 from the bank to get their company started. The company promised to pay a monthly payment of $500 to pay off the loan. The company could potentially turn profits of $20,000 a month. How long will it take the company to make $200000?
Amount borrowed = $100,000
Monthly repayment = $500
Monthly profit = $20,000
How long it'll take company to make $200,000
Since the company pays back $500 monthly, then net profit per month will be :
$20,000 - $500 = $19500
How long it'll take to make $200,000
Projected profit / net profit per month
$200,000 / $19500
= 10.256410
= about 10 months