Calculate the amount of additional capital a business needs to obtain in order to purchase a new piece of equipment that costs $250,000 if a bank will loan 75% of the price and the business has $20,000 in available cash.

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1. Calculate the amount of additional capital a business needs to obtain in order to purchase a new piece of equipment that costs $250,000 if a bank will loan 75% of the price and the business has $20,000 in available cash.

Making a brand promise. A brand promise is a business's agreement, spoken or unspoken, with customers that it will consistently meet their expectations and deliver on its brand characteristics and values. In the example, the brand promise is to provide all customers with quick, courteous service. Developing a campaign platform, stating industry policies, and establishing product position are not activities in which a business is making a pledge or promise to customers.
A risk assessment. A risk assessment is a process used by businesses to identify potential hazards that could threaten the company's livelihood. Managerial accounting is the process of analyzing and interpreting financial data to help a company achieve its goals. A financial calculation is any calculation involving financial information. Eddie is not conducting managerial accounting or financial calculations in this example. Even though Eddie is an entrepreneur, he is specifically conducting a risk assessment in this example.
Distribution. The function of business that involves the moving, storing, locating, and/or transferring ownership of goods and services is distribution. Companies should continuously analyze the areas of distribution (i.e., ordering, receiving, storing, and shipping) to ensure that each area is performing in the most efficient, and cost efficient, manner. Companies often analyze transportation services to compare rates and services. If a company finds that one company provides equal or better transportation services for less money, it might consider changing transportation vendors. Product management is a marketing function. Financial resources are sources of money such as sales income, investments, and loans. Production is the process of producing goods and services.
$42,500. In some situations, a bank will loan only a percentage of the price of new equipment, and the business must obtain additional capital in order to make the purchase. In this case, first calculate the amount that the bank will loan ($250,000 X 75% or .75 = $187,500). The bank will loan $187,500, and the business has $20,000 in available cash to put towards the purchase. Add those figures and subtract the total from the purchase price to determine the amount of additional capital the business needs to obtain ($187,500 + $20,000 = $207,500; $250,000 - $207,500 = $42,500).

Calculate the amount of additional capital a business needs to obtain in order to purchase a new piece of equipment that costs $250,000 if a bank will loan 75% of the price and the business has $20,000 in available cash.

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Calculate the amount of additional capital a business needs to obtain in order to purchase a new piece of equipment that costs $250,000 if a bank will loan 75% of the price and the business has $20,000 in available cash.

❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

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Without work one finishes nothing. - Ralph Waldo Emerson© 2026 Fatskills.com

All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | What Should We Know?
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© 2026 Fatskills.com