Agency wants to fund $600,000 in Research & Development

Leveraging on current low-interest environment, it plans to take a long-term bank loan of 10 years to finance the project.

Prevailing bank rate is 1.5%. The bank loan will be repayable annually in equal instalments.

What is the annual repayment amount? What will be the total interest paid over the life of the loan?

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Amount Loan $ 600,000 Bank Rate 1.5% Loan Term (Years) 10 Annual Repayment $ 65,060.51 Total $ Paid $ 650,605.07 Total Interest Paid $ 50,605.07 Amount Loan $ 600,000 Bank Rate 1.5% Loan Term (Years) 10 Annual Repayment $ 65,060.51 Total $ Paid $ 650,605.07 Total Interest Paid $ 50,605.07

Answer rating: 100% (QA)

Scenario 1 Amount Loan 60000 Bank Rate 10 Loan Term 8 years Annual Repayment Annual Repayment Amount ... View the full answer