Raising Money & Financials Savings and Bank Loans

Raising Money & Financials -- Savings and Bank Loans
Math Problems

Open Ended

Your business loan has a variable (it can change) interest rate.

Next month the annual rate will jump from 6.3% to 7.8%. Your balance is $1,620,000.

How much will your monthly payment go up?

Formula:
[(balance X (highest rate - lowest rate)] / 12
(balance X difference in rates) / 12

Open Ended

If you raised $400,000 in a stock sale and gave up 12% of your company,

what was the implied valuation of the company?

Formula:

money raised / 12%

Open Ended

You have a loan for $200,000 at 8.5% annual simple interest.

What is your monthly interest payment?

Formula:

loan amount x (interest rate / 12)

Open Ended

If you sell stock in your company for $100,000 and the valuation of your company is $625,000, what percentage of the company will you own after the stock sale?

the answer will be a percentage

Formula:

(company valuation - sell price) / company valuation

Open Ended

You have savings of $157,000. After thinking about it, you are willing to risk no more than 30% on your new business idea. How much do you have to invest in the business?

Formula:

amount X %age