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Homework 2: The business loss in Table 1 includes an interest payment of $10M a year for a $100M investment. The actual bank terms are

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Homework 2: The business loss in Table 1 includes an interest payment of $10M a year for a $100M investment. The actual bank terms are not stated. Determine the interest and principal paid on a $100M loan for the following cases: Cases(a) )(d Loan (SM)R100 100 100 100 Interest (%)and-10.5 | 5.0 | 10.5 | 5.0 AbboulM6|Payment per yr | 1 | 1 1 h Loan Duration (yr)10 10 2020 Ans: (a) $16.5/yr, 165M (b) S12.95/lyT, 129.5M, () S12.15/yt, 243M, (d) 8.02/yT 160.4M

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