Question: In case that the Co. decides to go for a loan, The bank offers the following conditions: NP of the loan: 400,000 USD r fix

In case that the Co. decides to go for a loan, The bank offers the following conditions:

NP of the loan: 400,000 USD

r_fix = 6%

r_var = Euribor + 1%

Loan to be paid back in constant periodical payments during the next 5 years.

If the Co. decides to take the Loan under constant interest rate conditions, and the payments are to be done on a yearly basis, what is the amount of each yearly payment the Co. will have to pay back to the bank during the next 5 years? And how much will have paid the Company over those 5 years?

If the Co. decides to take the Loan under constant interest rate conditions, and the payments are to be done on a monthly basis, what is the amount of each monthly payment the Co. will have to pay back to the bank during the next 5 years? And how much will have paid the Company over those 5 years?

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