During the current year an entity had in place $1 million of 6% loan finance and $2 million of 9% loan finance. It constructed a new factory which cost $600,000 and this was funded out of the existing loan finance. The factory took 8 months to complete.

Joe wants to start his own business. The business he wants to start will require that he purchase a factory that costs $300,000. To finance this purchase, he will use $100,000 of his own money, on which he has been earning 10 percent interest. In addition, he will borrow $200,000, and he will pay 12 percent interest on that loan. For the first year of operation, what is the opportunity cost of purchasing the factory?

If the opening balance of borrowings was $330,000, the closing balance was $550,000 and  a total of $240,000 was paid off the entity’s borrowings during the period, how much additional cash did the entity borrow during the period?$120,000$460,000$90,000$3,100,000

The business has a loan of $50,000 and makes interest-only repayments of 1% interest per month. It is the end of the month and they are making their $500 interest payment.

Suppose that last year $30 billion in new loans were extended by banks while $50 billion in old loans were paid off by borrowers. What happened to the money supply?

A company borrows money as needed on the first day of the month and repays principal and interest on the last day of the budget period, if cash is available.  For the second quarter of the year, they borrowed $10,000 in April, $8,000 in May and $5,000 in June.  The interest rate is 1% per month.  Assuming enough money is available on June 30th to repay the debt, the total amount of interest due is Blank______.Multiple choice question.$560$230$690