Loan Rp. 1,000,000,000 is subject to 15% annual interest and must be returned in uniform annual installments for 10 years. After the 4th installment is paid, the bank offers a change in interest from an annual to a monthly rate. For borrowers who are willing to follow the new interest, they will get cash back of 10 percent of the remaining loan which is immediately calculated as a return. a. What is the new annual interest after the change? b. What was the annual installment for the last 6 years after the interest changed?
Loan Rp. 1,000,000,000 is subject to 15% annual interest and must be returned in uniform annual installments for 10 years. After the 4th installment is paid, the bank offers a change in interest from an annual to a monthly rate. For borrowers who are willing to follow the new interest, they will get cash back of 10 percent of the remaining loan which is immediately calculated as a return. a. What is the new annual interest after the change? b. What was the annual installment for the last 6 years after the interest changed?
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 15P
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(engineering economic ) Loan Rp. 1,000,000,000 is subject to 15% annual interest and must be
returned in uniform annual installments for 10 years. After the 4th installment is
paid, the bank offers a change in interest from an annual to a monthly rate. For
borrowers who are willing to follow the new interest, they will get cash back of
10 percent of the remaining loan which is immediately calculated as a return.
a.
What is the new annual interest after the change?
b.
What was the annual installment for the last 6 years after the interest
changed?
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