When a firm buys another company, the company frequently has some outstanding debt that the purchaser must pay. Consider three companies, A, B, and C, that are purchased by Maxx Industries. The following table gives the amount of each company's debt, classified by the number of days remaining until the debt must be paid. Suppose Maxx Industries pays 20% of the amount owed on each loan. Write the matrix that would give the remaining debt in each category.

A)
B)
C)

Question

​When a firm buys another company, the company frequently has some outstanding debt that the purchaser must pay. Consider three companies, A, B, and C, that are purchased by Maxx Industries. The following table gives the amount of each company's debt, classified by the number of days remaining until the debt must be paid. Suppose Maxx Industries pays 20% of the amount owed on each loan. Write the matrix that would give the remaining debt in each category. ​

A) ​ 
B) ​ 
C) ​

Quizplus · Accepted Answer

To find the remaining debt, we need to subtract the amount paid (20%) from the amount owed. The resulting matrix would be:

| A: | 20% of 50000 | 20% of 40000 | 20% of 30000 |
| B: | 20% of 25000 | 20% of 20000 | 20% of 15000 |
| C: | 20% of 10000 | 20% of 8000  | 20% of 6000  |

Simplifying the expression, we get:

| A: | 10000 | 8000 | 6000 |
| B: | 5000  | 4000 | 3000 |
| C: | 2000  | 1600 | 1200 |

Therefore, the answer is option B.

​When a Firm Buys Another Company, the Company Frequently Has

When a Firm Buys Another Company, the Company Frequently Has