UAE Small Business Loan. Mohammad tried one last time to explain the loan structure offered by the company's Emirates bank. His boss just stared at him. Mo explained the detailed calculation of annual interest and principal payments, step-by-step, as detailed by the bank. The loan was for USD7 million, for 5 years, with an 8.22% interest rate. Step 1: Calculate interest on Loan Principal for one year. Step 2: Multiply that interest by the number of years of the loan. The bank labeled this "Total Interest." Step 3: Add the calculated Total Interest to the Loan Principal. Step 4: Divide this calculated total by the number of years of the loan. This is the annual payment due on the loan (principal and interest). Step 5: Using the calculated annual payment from step 4, structure the repayments to make all interest payments (totaling to Total Interest from Step 2) up-front. Once all interest has been paid, the remaining cash flows associated with the annual payment are considered repayment of principal. a. Complete the full calculation of the proposed loan, including all 5 years of principal, interest, and total payments. b. Estimate the all-in-cost of this financing. c. Recalculate all principal and interest payments for the same 5-year USD7 million dollar loan using traditional Western financial calculations. Include the all-in-cost of funds in your calculations. d. Compare the two loan structures. Why do you think the Emirates bank prefers this structure? a. Complete the full calculation of the proposed loan, including all five years of principal, interest, and total payments. Step 1: Calculato interest on Loan Principal for one year. The interest on Loan Principal for one year is $ (Round to the nearest dollar.)

UAE Small Business Loan. Mohammad tried one last time to explain the loan structure offered by the company's Emirates bank. His boss just stared at him. Mo explained the detaled calculacion of annual interest and principal payments, step-by-step, as detailed by the bank. The loan was for USD 7 mallon, for 5 years, with an 822% interest rate Siep 1: Calculase interest on Loan Principal for one yeat. Step 2 Multiply that interest by the number of years of the loan. The bank labeled this "Total interest." Step 3. Add the calculated Total interest to the Loan Principal. Step 4. Divide this calculated total by the number years of the loan. This is the annual payment due on the loan (principal and interest) Step 5: Using the calculated annual payment from step 4, structure the repayments to make al interest payments (votaling to Total interest from Siep 2) up-fiont Once all hiterest has been paid, the remaining cash flows associated with the annual poyment are considered repoyment of principal. a. Complete the ful calculaton of phe proposed loan, including all 5 years of principal, interest, and tolal payments b. Eatmate the all-in-oost d this financing. c. Fiecalculate all prinopal and interest payments for the same 5-year USOT millon dollar loan using traditional Westarn finanoal calcutations. Include the all-in-cost of funds in your calculations. d. Compare the two loan structures. Why do you think the Emirates bank prefers this structure? 2. Complete the fult calculation of the proposed loan, including al five years of princpal, interest, and total paryments. Step 1: Colculate interest on Loan Principal for one year: The interest on Laan Principal for one year is 1 (Round to the rearest dollar.)