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Assume that you have a plan to start a new business with the required capital of birr 1,500,000 among the required capital 20% is covered
Assume that you have a plan to start a new business with the required capital of birr 1,500,000 among the required capital 20% is covered by your father as a gift and 40% is covered by loan received from awash international bank with 11% interest rate and that will be repaid semi-annually at equal installment for four years Required A. calculate the principal repayment and cost of credit for first year if bank charges birr 1500 as arrangement fees B. calculate the principal repayment amount and cost of credit for second year if bank charges birr 500 as penalty fees C. determined the outstanding amount at the end of year three
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