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A . A loan has the following cash flow: B . The loan has a nominal and effective interest rate of 1 0 % .

A. A loan has the following cash flow:
B.
The loan has a nominal and effective interest rate of 10%. Show how the
payments related to the loan can be split into an interest and installment
component for each of the three years.
C. Now suppose that the loan in A) is taken out as an annuity loan over 3
years at 10% annual interest. Find the annual instalment amount, and split
the instalment amount into interest and installments for each of the 3
years.
D. An electrical store offers you a stereo system for cash NOK 17,500. An
alternative is to buy the facility on installment payments, and you then pay
NOK 1,622 in monthly instalments (in advance) for one year. What
effective interest rate per year does this financing offer entail?
E.1 year ago, you took out a 4-year annuity loan of NOK 500,000 with a fixed
interest rate of 10% over the life of the loan. Recently, the borrowing rate
on similar loans has fallen to 6%, and the lending market expects this
interest rate to remain for the remainder of the loan's term. You now want
to exchange the loan for a loan with 6% interest. How much do you have to
expect to pay to be released from the loan?
F. A company sells exclusively on credit, and in order to finance trade
receivables, the company has an overdraft, and the company's bank has
provided the following terms for the overdraft loan:
G.
Suppose that on average 50% of the granted credit has been used. What
will be the effective annual interest rate on the overdraft?
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