Sylvester Indet negotiated a loan from the EZY Bank of Canada for $300,000 to finance the expansion of his business. The repayment terms were fixed at $2,500 per month at 4% per annum. The loan was guaranteed by Horace Lowded. Sylvester's business took a turn for the worse and as a result he alone had a meeting with the loans officer of the EZY Bank and renegotiated the loan to be repaid at $2,000 per month but at 5% annum. All other terms remained the same. The business eventually failed and the loan fell into arrears. The Bank is now demanding payment of the entire loan from Horace Lowded.

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Answer In this scenario Sylvester Indet initially negotiated a loan from EZY Bank of Canada for 300000 to finance his business expansion The loan repa... View the full answer