Your company intend to build an indoor sport complex estimated to cost RM1 million. You have applied for a loan, and they approved 80% from your original amount. Other conditions agreed by the bank are as below: The loan amount will be given in two stages, half in the first year and another half in the second year. Another 500,000 in year 2. Instalment can be deferred for the first 3 years. While deferment of instalment, compound interest of 10% per annum on balance will be charged. Interest of 6% per annum will be charged starting year 4 onwards. The whole loan must be paid in 18 years. Calculate the uniform instalment plan for your company.

Your company intend to build an indoor sport complex estimated to cost RM1 million. You have applied for a loan, and they approved 80% from your original amount. Other conditions agreed by the bank are as below: The loan amount will be given in two stages, half in the first year and another half in the second year. Another 500,000 in year 2. Instalment can be deferred for the first 3 years. While deferment of instalment, compound interest of 10% per annum on balance will be charged. Interest of 6% per annum will be charged starting year 4 onwards. The whole loan must be paid in 18 years. Calculate the uniform instalment plan for your company.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 19P

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