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Seventeen years ago, the Archer Corporation borrowed $7,350,000. Since then, cumulative inflation has been 95...

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Accounting

Seventeen years ago, the Archer Corporation borrowed $7,350,000. Since then, cumulative inflation has been 95 percent (a compound rate of approximately 4 percent per year).
When the firm repays the original $7,350,000 loan this year, what will be the effective purchasing power of the $7,350,000?(Hint: Divide the loan amount by one plus cumulative inflation.)
Note: Do not round intermediate calculations and round your answer to the nearest whole dollar.
To maintain the original $7,350,000 purchasing power, how much should the lender be repaid? (Hint: Multiply the loan amount by one plus cumulative inflation.)
Note: Do not round intermediate calculations and round your answer to the nearest whole dollar.

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