Engineering Economic

Tomi, an entrepreneur wants to buy a machine for Rp 150,000,000.

To pay for the machine, Tomi will borrow money with a monthly installment payment scheme. Tomi can apply for a loan to Koperasi Maju Sukses with the following scenario

Amount of monthly installment Year 1-2 Rp 2,000,000, Year 3-4 Rp 2,250,000

Monthly installments Interest (per year) 6%

To meet machine cost shortages , Mr. Tomi also applied for a loan to Bangkit Mandiri Cooperative for 12 months with an interest of 15% per year and was compounded monthly.

a. How much is your loan to the Bangkit Mandiri Cooperative?

b. How much installments do you have to pay each month to Bangkit Mandiri Cooperative?

c.

what is effective interest rate? and when should we use effective interest rate?