Question
a company borrows 166,500 from a bank. The interest rate on the loan is 6% compoaunded semianually. The company agrees to repay the loan in
a company borrows 166,500 from a bank. The interest rate on the loan is 6% compoaunded semianually. The company agrees to repay the loan in equal semi annual installments over the next five years The first payment is to be made 6 months from now (Use factor tables for calulation like PV of annuity of Fv annuity i just dont know which table is the correct one to use 1) Amount of each semi annual payment
2) In first payment what is the amount of interest cancelled
3) IN fifth payment what is the amount of loan paid net of interest
4) in the last payment what is the amomunt of interest cancelled
5) Assume the debt has the option to make on extraordinary payment of up to 20% of the principle. if the company decided to excercise the right and make the extra payment with the 8th payment how much must it pay at the 9th payment ot pay off the loan
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