A company borrowed from a bank an amount of (24,000) dinars and pledged to pay it after (40) months, provided that the interest of the loan is paid periodically at the beginning of every (8) at an interest rate of (6%). The company has paid the first three interest and asked the bank to postpone the payment of the remaining interest On the day of the end of the loan term (b) (8), the bank agreed to compute a delay interest at a rate of (10%) annually for late interest and (12%) as interest for the loan.

    Required:

1- Number of periodic benefits.

2- The value of one periodic interest.

3- What the company pays at the end of the period.

4- The real annual rate of the loan.

5- The bank's annual rate of investment, noting that the bank invests its money upon receiving it at an annual interest rate of (8%).

Answer rating: 100% (QA)

The number of periodic payments can be calculated by dividing the total loan period by the length of each period 40 months 8 months 5 periodic payment... View the full answer