Question
A company is requesting a bank loan of 50 000 to be reimbursed over 5 years. Annual rate of interest is 2%. A bank
A company is requesting a bank loan of 50 000 € to be reimbursed over 5 years. Annual rate of interest is 2%.
A bank proposes a fixed payment with two options: annual or semi-annual payment
1. How much you will pay per year?
2. How much you will pay per semester ?
3. Draw the reimbursement table for annual payment?
4. You want to differ the payment for 2 years. What will be amount you owe to the bank at the end of 2 years ?
5. What will be the annual payment with the deferral?
Step by Step Solution
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Step: 1
The loan amount is 50000 and the annual rate of interest is 2 To calculate the annual payment we can use the formula for the present value of an annui...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
