Question
On December 31, 2013, KFG owed TRH Bank $4,000,000 on a loan payable. Interest is 5% per annum and had been paid for 2013.
On December 31, 2013, KFG owed TRH Bank $4,000,000 on a loan payable. Interest is 5% per annum and had been paid for 2013. TRH Bank agreed to allow KFG to satisfy their entire obligation by repaying the loan in 3 equal instalments of $1,100,000 starting on December 31, 2014 but to pay 8% interest on outstanding amounts. The market rate of interest is 6%.
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Public Finance An International Perspective
Authors: Joshua E. Greene
1st Edition
9789814365048
