Evaluate the amount of the original loan

Assignment Help Financial Accounting

Reference no: EM139847

1. In order to restructure some of its debt, General Motors decided to pay off one of its short-term loans. If the company borrowed the money 1 year ago at an interest rate of 12% per year and the total cost of re-paying the loan was $120 million, what was the amount of the original loan?

A. PV= $107,142,857.14

B. FV= $120,000,000.00

C. RATE= 12%

D. Nper= 1

2. Two years ago I bought several boxes of flooring for $20 at an auction. I just sold them for $30. What effective annual rate of return did I make on my investment on the basis of compound interest?

A. PV = $20.00

B. FV = $(30.00)

C. RATE = 22.474%

D. Nper = 2

Reference no: EM139847

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