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John borrowed $3,000,000 from a bank that charges interest at a rate -10% per annum. He can choose one of the following three different ways
John borrowed $3,000,000 from a bank that charges interest at a rate -10% per annum. He can choose one of the following three different ways to make the repayment in the coming 10 years: (1) Method 1: The principal sum of S3,000,000 will be amortized in 10 years, $300,000 at the end of each year; (2)Method 2: The principal sum will be amortized in 10 years in an increasing manner from $210,000 to $390,000 with an annual increase of $20,000; (3) Method 3: The principal sum will be paid in a lump sum at the end of Year 10 If for all the three methods, annual interest incurred will be paid at the end of each of the 10 years, what is the total annual amount John needs to pay to the bank at the end of each of the 10 years
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