Mr. Zahid is looking to borrow an amount of Rs. 50,000 from Habib Bank Limited at compound annual interest rate of 15%.

a) Amortize the loan if annual payments are made for 10 years.
b) Why there is no similar payment of interest over the length of loan amortization?
c) After amortizing the loan, you may observe a specific increasing or decreasing pattern in annual interest payment. By looking thoroughly at the flow and analyzing it, elaborate which party (debtor or creditor) is advantageous according to time value of money.

Note: A, B and C part is compulsory Need urgent

Answer rating: 100% (QA)

B C D 1 Answer to Parta 2 3 Amount of Loan 5000000 4 Inter... View the full answer