Question- A. Mr. Mamun borrowed Tk. 115,000 at a 12.5% annual rate of interest to be repaid over 5 years. The loan is amortized into five equal end-of-year payments. The loan has processing fees of 1.25%.

Requirements:

I.Calculate the annual end-of-year loan payment.

II.Prepare A loan amortization schedule showing the interest and principal breakdown of each of the five loan payments.

III.Explain why interest decreased gradually in this process?

Question- B. Define agency problem? Explain different mechanisms to minimize the agency problem of a business enterprise in Bangladesh, label some high cases from Bangladesh.