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2. Innocent is an entrepreneurial graduate who has ventured into a horticultural business after completing his studies at Bunda. To produce at maximum capacity, he
2. Innocent is an entrepreneurial graduate who has ventured into a horticultural business after completing his studies at Bunda. To produce at maximum capacity, he will require a loan amounting to MK6,000,000. Having approached FDH bank, Innocent has been told that he can access the loan, with loan conditions of repayment period of 4 years and interest rate of 35%. Given the above information; a. Calculate the amortized loan schedule for both options of equal principal payments and 18 Marks equal total payments. b. What option among the two amortization schedules will you recommend to Innocent? 2 Marks Explain the reason for your recommendation
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