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A company requires $2,000,000, which it will receive as bank loan with the following conditions: Term: 1 year Interest: 8% quarterly Form of payment: equal
A company requires $2,000,000, which it will receive as bank loan with the following conditions: Term: 1 year Interest: 8% quarterly Form of payment: equal quarterly installments due, which include interest and capital payments.
a. Determine the value of the installment.
b. Illustrate with a table period by period the following concepts:
- Initial balance
- Interest accrued
- Fee to pay
- Capital subscription
- Closing balance
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