D. UAE Small Business Loan. Mohammad tried one last time to explain the loan structure offered by the company's Emirates bank. His boss just stared at him. Mo explained the detailed calculation of annual interest and principal payments, step-by-step, as detailed by the bank. The loan was for USD7 million, for 5 years, with an 8.22% interest rate. Step 1: Calculate interest on Loan Principal for one year. Step 2: Multiply that interest by the number of years of the loan. The bank labeled this "Total Interest." Step 3: Add the calculated Total Interest to the Loan Principal. Step 4: Divide this calculated total by the number of years of the loan. This is the annual payment due on the loan (principal and interest). Step 5: Using the calculated annual payment from step 4, structure the repayments to make all interest payments (totaling to Total Interest from Step 2) up-front. Once all interest has been paid, the remaining cash flows associated with the annual payment are considered repayment of principal. d. Compare the two loan structures. Why do you think the Emirates bank prefers this structure? to the nearest dollar.) Payments Funds raised Interest payment Principal payment Total cash flows 0 Payments Funds raised Interest payment Principal payment Total cash flows $ 7,000,000 0 $ 7,000,000 1 $ 7,000,000 $ 7,000,000 Using traditional Western financial calculations, the principal, interest, and total payments of the loan for year 3 are: (Enter a positive number for a cash inflow and negative for a cash outflow. Round to the nearest dollar.) $ (x) $ (x) $ (1,763,373). part 14 of 18

UAE Small Business Loan. Moharrmad tried cone last time to explain the loan structure offered by the company/s Emirates bank. Hs boss just stared at him, Mo explained the detailed calculation Using traditional Western financial calculasons, the prinopal, interest, and total payments of the loan for year 1 are: (Enter a positive number for a cash inflow and negative for a cash outfow. Round to the nearest dolacs) Using traditional Western financial calculations, the princpal, interest, and fotal payments of the loan for year 2 are: (Enter a positive number for a cash inflow and negative for a cash outflow, Round to the nearest dollar) Using tradtional Western financlal calculasions, the principal, interest, and total payments of the loan for year 3 are: (Enter a poseve number for a cash inflow and negative for a cash outfow. Round to the nearest dollar)