How much interest he will have to pay

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Is budgeting to save for either the larger home or the restaurant, Chandan is also wondering how long achieving his goals may take. Chandan is worried about liquidity and wants a cash budget for the next year for whichever decision is implemented. He wants to know how much he will have to borrow when there are cash shortages and how much interest he will have to pay. Currently, Chandan has $120,000 saved up in a personal bank account earning 1.5% per year. He is expecting to use most of this money as a down payment for his new home. He wants your advice on how to invest these funds.

Reference no: EM133234145

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