A technical Company received for the purchase of a machine today (t=0) from a Credit Institution (e.g. a Bank) a loan of L0, which it will repay in 8 equal installments of P, the payment of which will begin after 3 time periods (t=3). The Company agreed that the loan will have an interest rate i1=5% for the first 4 time periods (t=0÷4), i2=6% for the next 3 time periods (t=4÷7) and 2 i3=7% for the remaining time periods. If during the time period t=6 and while the installment of this period has been paid, the remaining debt of the Company is equal to €21,000, to calculate:
(a) The amount of dose P.
(b) The amount of the loan L0.
(c) What is in the Company's interest, to repay the loan with the interest charge as described above or with an interest rate of i=6% fixed for the entire repayment period of the loan?
(d) For what interest rate i4 uniform for the entire borrowing period results for the Company the same installment as the original option?

Answer rating: 100% (QA)

Solution Okay lets break this down stepbystep The company receives a loan of L0 at t0 T... View the full answer