as part of financing of its Indonesian subsidiary, Cemex provides a US$ 3 year loan in the amount of $900 mln at 12% annual interest, to its Indonesian subsidiary. Recall that the exchange rate as of today is Rp/$ 10,000 and in accordance with the PPP given the US and Indonesian Inflation rates of 3% and 30% respectively the future exchange rates are expected to be Rp/$ 12,621; 15,930; 20,106 in years 1-3, respectively.

a) compute the annual loan payment

b) develop an amortization schedule where you show interest payment and principal payment for each year, as well as total annual payment as computed in part 'a'

c) convert the amortization schedule you develop in part b to Rp (in mln) at scheduled spot rates (i.e., Rp/$ 10,000).