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Consider a 5 - years loan of $ 1 , 0 0 0 at 1 5 % interest rate per Annum, when interest permitted to
Consider a years loan of $ at interest rate per Annum, when interest permitted to compound answer the following points:
Amount owed at beginning of year A
Amount to be paid at end of year
Amount owed at end of year
Amount to be paid by borrower at end of year!
Draw the cash flow for the borrower.
Draw the cash flow for the lender.
Fill the table below.
tableCalculation of compounded interest when interest permitted to compoundYeartableAmountOwed atBeginningof yearAtablecompoundedinterest at End ofYearBAtableAmountOwed atEndof yearABtableAmount toBe Paid byBorrowerAt End ofYear
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