How much are the monthly payments required to pay off loan

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Reference no: EM133560085

Assignment:

You own a small startup software firm and need a second investment round to keep the company afloat for another year. To comply with IRS guidelines, you must compile a publicly accessible financial report.

1. The company has had investors take care of the initial cost of the startup, but you are concerned with having a standing amount of $1,000,000 that can be used for emergency purchases in the future. The company is using a 5-year plan sinking fund to make this future reserve with a rate of 2%. What monthly payments are needed to make this reserve amount in the allotted time?

2. Early in the year, your software security was cyber-hacked, causing an emergency cybersecurity overhaul. This was an unexpected expense, and thus, a loan was taken out to fix the malware attack as fast as possible. The emergency cyber security cost a total of $98,550. You were able to put down $10,000 but needed to finance the rest at a rate of 4.5% compounded monthly over 3 years. How much are the monthly payments required to pay off the loan?

3. Since the cyber security fix loan was made for business-related purposes, the interest is tax-deductible. How much total interest was paid based on the purchase?

Reference no: EM133560085

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