A company is requesting a bank loan of 50 000 to be reimbursed over 5 years.

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A company is requesting a bank loan of 50 000 € to be reimbursed over 5 years. Annual rate of interest is 2%.

A bank proposes a fixed payment with two options: annual or semi-annual payment

1. How much you will pay per year?

2. How much you will pay per semester ?

3. Draw the reimbursement table for annual payment?

4. You want to differ the payment for 2 years. What will be amount you owe to the bank at the end of 2 years ?

5. What will be the annual payment with the deferral?

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Posted Date: Mar 20, 2023 01:25 AM

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A company is requesting a bank loan of 50 000 to be reimbursed over 5 years.

Question:

Expert Answer:

The loan amount is 50000 and the annual rate of interest is 2 To calculate the annual payment we can use the formula for the present value of an annui... View the full answer

Income Tax Fundamentals 2013

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