In: Finance
Manufacturing company borrows 5 million euros from the bank to fight the consequences of the corona virus. The repayment schedule is based on an annuity. The interest rate is 10% and the loan is paid back with 6 annual payments.
Question:
* What is the loan balance immediately the first loan payment is made?
Calculations-
Note - |
Interest = Opening balance *Interest rate |
Principal paid = Installment - Interest |
Closing balance = Opening balance - Principal paid |
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