alleryStart learning →A $1,000,000 loan at 5% for a year builds a factory; $5,000 earned on idle funds. Capitalise?
A$45,000
B$50,000
C$55,000
D$5,000
Answer & Solution
Correct answer: A. $45,000
Interest of $50,000 less $5,000 investment income leaves $45,000 to capitalise.
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