Medroch group company wants to invest for the expansion of gold mining in shakiso .The total capital needed for the expansion of the project birr 9,000,000. To achieve the pain 25% of the capital covered by loan from development bank of Ethiopia the company agreed to borrowed loan at the interest rate 13% paid monthly at equal installment for 5 years and service charge 6% of the total loan amount equity distribute for 5 years. Based on the above information perform the following tasks. Task 1. Calculate the total interest expense and service charge at the end of the first year (2017 and 2018) Task 2. Calculate total service charge at the end of five years.

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Medroch Group Loan Analysis Loan Information Total Project Capital Birr 9000000 Loan Percentage 25 L... View the full answer