Question: Please answer the question with steps, thank you To nance a new project, you have taken out a loan of size $L. On this loan,

Please answer the question with steps, thank you

Please answer the question with steps, thank you
To nance a new project, you have taken out a loan of size $L. On this loan, you will only pay interest on the loan for 1{} years, then at the end of 10 years, you will repay the entire loan with one single payment {equal to SL). The interest rate on the loan is E% per annum (effective). The interest must he paid every 2 months, with the interest payment equal to the interest earned on the loan over the previous 2 month period. The project earns $Y at the end of each month, for 10 years. The reinvestment rate on earnings from the project =_,r'% per annurn (effective). (a) Derive an expression {in terms of Y,_,r', L and 1'), that gives the accumulated value of your nancial position after 10 years, immediately after the loan of 3L has been repaid. (8 marks}

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