uction LTD borrowed 500.000.000 $ from the bank for Tacima Dam with 80% interest in the first place and increased this amount by 60.000.000 $ every year a)What is his debt to the bank a

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section: Chapter Questions
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Mr.Ali Dam Construction LTD borrowed 500.000.000 $ from the bank for Tacima Dam with 80% interest in the first place and increased this amount by 60.000.000 $ every year

a)What is his debt to the bank after 10 years?

b)How much would the debt have been if he had taken it all at once instead of doing so?

c)What would be the money he would withdraw from the bank every year for 10 years if he borrowed equally every year?

d)What would be the consequences if he received the money at the beginning of the semester?

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