# Suppose Subaru UK Limited wishes to borrow money from UBS. They agree on an annual rate of

## Question:

Suppose Subaru UK Limited wishes to borrow money from UBS. They agree on an annual rate of 10 per cent.

1. Suppose Subaru agrees to repay £500 million at the end of 4 years. How much will UBS lend Subaru?

2. Suppose Subaru agrees to repay a total of £500 million at a rate of £125 million at the end of each of the next 4 years. How much will UBS lend Subaru?

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**Related Book For**

## Introduction To Management Accounting

**ISBN:** 9780273737551

1st Edition

**Authors:** Alnoor Bhimani, Charles T. Horngren, Gary L. Sundem, William O. Stratton, Jeff Schatzberg