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How long will take to pay the investor

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Reference no: EM133010515

In order to start the business the owner has found an investor who will put up $500,000. The owner wants to pay back the investor out of profits, using 30% of the pre-tax profits to pay the investor, and he has guaranteed the investor he will get back $750,000.

Problem 1: How long will it take to pay the investor $750,000, if sales in year one are $2 million, and sales increase 13% each year.

Reference no: EM133010515

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