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A company has arranged a four-year loan for $30,000 with simple annual interest of 6% paid annually. In addition, it decides to pay back $10,000,
A company has arranged a four-year loan for $30,000 with simple annual interest of 6% paid annually. In addition, it decides to pay back $10,000, $5000, and $3000 of the principal at the end of years 1, 2, and 3, respectively. a) Compete a cash flow table from the company's perspective. Use the following table format. b) Draw a cash flow diagram to represent this loan from the company's perspective. Amount Received Principal Paid Principal Outstanding Interest Paid Total Cash Flow End of Year
A company has arranged a four-year loan for $30,000 with simple annual interest of 6% paid annually. In addition, it decides to pay back $10,000, $5000, and $3000 of the principal at the end of years 1, 2, and 3, respectively.
a) Compete a cash flow table from the company's perspective. Use the following table format.
b) Draw a cash flow diagram to represent this loan from the company's perspective.
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