Compute the market value of the following term loan at the beginning of the 3rd year. Loan amount Annual interest rate, r Loan period in years Market interest rate at the beginning of the 3rd year Year 1 678994556 10 95,000 7.20% 10 5.60% A. Loan balance at beginning of year B. Total payment C. Interest payment = r*A D. Principal repayment = B-C E. Loan principal balance at end of year=A-D

Compute the market value of the following term loan at the boginning of the 3rd year