At the beginning of the year,you have an outstanding short-term loan of $10 which was used to cover your cash needs for the previous year. During the current year,you expect to pay $2 interest and have an annual net cash inflow of -$10 (negative),excluding the interest payment. What is your anticipated loan balance at year end?

Question

Quizplus · Accepted Answer

The initial loan balance is $10. With a net cash outflow of $10 and an interest payment of $2, you need an additional $12, resulting in a total loan balance of $22 at year end.

At the Beginning of the Year,you Have an Outstanding Short-Term