Liverpool plc is a growing company which wishes to take out a loan of £300,000 from a local bank. It would like to repay the loan in 10 increasing annual instalments, each one paid at the end of the year. The bank charges an interest rate of 7%. As it is a growing company, it would like its payments to increase at a rate of 4% every year. 

How much would Liverpool plc need to pay to the bank at the end of the first year?

Answer rating: 100% (QA)

To calculate the first years payment we need to find the amount of the loan repayment which can be c... View the full answer