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Ali Trading LLC is a construction company based in Muscat and the company is forecasting an expansion of its current business network in another region
Ali Trading LLC is a construction company based in Muscat and the company is forecasting an expansion of its current business network in another region of the Sultanate. Assume that you have been assigned the role of Finance Office for Ali Trading LLC. The Board of Directors are referring you to design a monthly loan amortization schedule for two loan products. The loan details are as follows: a. Bank Nizwa: Loan Summary and schedule of Medium-Term Loan b. Bank Dhofar: Loan Summary and schedule of Long-Term Loan 1- Apply your understanding about the present value and future value of annuities and prepare TWO Loan EMI (EMI = Equated Monthly Installments) payment schedules based on the following instructions: a. Suggested Medium term Loan period is 2 years to 3 years b. Suggested Long term Loan period is 7 years and above 2- Each loan summary should contain following points: (10 marks) a. What type of loan is chosen? b. Why is it chosen? c. Interest rate, number of years (loan period) and loan amount to be assumed and clearly stated d. Starting date and ending date of the loan period is to be mentioned 3- The payment schedule should cover the following: (20 marks) e. Serial No. f. Date (period)
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