Starting your own business can be exciting and daunting at the same time. Busine

Question

Starting your own business can be exciting and daunting at the same time. Businesses use math when managing finances, determining production levels, designing products and packaging, and monitoring labor. A bakery can be a highly profitable and rewarding business.

Initial Budget:
$80,000 loan from family
$38,250 small business loan from bank
All loans to be repaid in 10 years

You have recently found a location for your bakery and have begun implementing the first phases of your business plan. Your budget consists of an $80,000 loan from your family and a $38,250 small business loan. These loans must be repaid in full within 10 years.

You will use 25% of your budget to rent business space and pay for utilities.

An investor has increased your budget by $22,250. The investor does not need to be repaid. Rather, he becomes part owner of your business.

e. This equation illustrates your remaining funds after paying for rent and utilities. How much money is left? Explain how you arrived at your answer.

$38,250 + $80,000+ $22,250-0.25($80,000 + $38,250) =

Explanation / Answer

$38,250 + $80,000+ $22,250-0.25($80,000 + $38,250) = funds leftover this equation is valid assuming the 22250 is not part of the 25% budget what this means is first you take your combined funds (38250 + 80000 + 22250) and add them together. after that 25% of the initial loans are subtracted to show remaining value. this is represented by the 0.25*(38250 + 80000). $38,250 + $80,000+ $22,250-0.25($80,000 + $38,250) = 110937.50 $110937.50 remain

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