Lockdown (PTY)LTD is just emerging from a tough time during the pandemic. The Management of the company has approached its bank looking for a R10 million loan. The bank is proposing to charge 12% interest and the repayments should be made in yearly installments over five years.

Calculate the yearly repayments and draw up a loan amortization table, in addition critically assess the role of time value of money in financial management. (25 Marks)