1.10 Emerson Processing borrowed $900,000 for in- stalling energy-efficient lighting and safety equip- ment in its...

 

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1.10 Emerson Processing borrowed $900,000 for in- stalling energy-efficient lighting and safety equip- ment in its La Grange manufacturing facility. The terms of the loan were such that the company could pay interest only at the end of each year for up to 5 years, after which the company would have to pay the entire amount due. If the interest rate on the loan was 12% per year and the company paid only the interest for 4 years, determine the following: (a) The amount of each of the four interest payments (b) The amount of the final payment at the end of year 5 Lvear investments has the 1.10 Emerson Processing borrowed $900,000 for in- stalling energy-efficient lighting and safety equip- ment in its La Grange manufacturing facility. The terms of the loan were such that the company could pay interest only at the end of each year for up to 5 years, after which the company would have to pay the entire amount due. If the interest rate on the loan was 12% per year and the company paid only the interest for 4 years, determine the following: (a) The amount of each of the four interest payments (b) The amount of the final payment at the end of year 5 Lvear investments has the