Suppose that you have borrowed 5,000,000 from a bank with 5% interest rate for 4 years. Show the table of principal payments and interests you must pay each year if you decide to borrow with the following plans. Plan Repay principal Repay Interest A Equal annual installments Interest on unpaid balance Compound and pay at end of loan End of loan C Equal annual installments

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
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Suppose that you have borrowed 5,000,000 from a bank with 5% interest rate for 4 years. Show the table of
principal payments and interests you must pay each year if you decide to borrow with the following plans.
Plan
Repay principal
Repay Interest
A
Equal annual installments
Interest on unpaid balance
В
End of loan
Compound and pay at end
of loan
C
Equal annual installments
Transcribed Image Text:Suppose that you have borrowed 5,000,000 from a bank with 5% interest rate for 4 years. Show the table of principal payments and interests you must pay each year if you decide to borrow with the following plans. Plan Repay principal Repay Interest A Equal annual installments Interest on unpaid balance В End of loan Compound and pay at end of loan C Equal annual installments
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