Agency wants to fund $600,000 in Research & Development

Leveraging on current low-interest environment, it plans to take a long-term bank loan of 10 years to finance the project.

Prevailing bank rate is 1.5%. The bank loan will be repayable annually in equal instalments.

What is the annual repayment amount? What will be the total interest paid over the life of the loan?

Amount Loan $ 600,000 Bank Rate 1.5% Loan Term (Years) 10 Annual Repayment $ 65,060.51 Total $ Paid $ 650,605.07 Total Interest Paid $ 50,605.07