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Manufacturing company borrows 5 million euros from the bank to fight the consequences of the corona...

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?

Solutions

Expert Solution

Calculations-

Note -
Interest = Opening balance *Interest rate
Principal paid = Installment - Interest
Closing balance = Opening balance - Principal paid

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jeff jeffy answered 2 years ago
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