The Management Of Jhon Publication Decided To Buy A Printing Press By Taking A Loan Of 1 000 000 For 3 Years From Uk B 1 (132.37 KiB) Viewed 38 times
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The management of Jhon publication decided to buy a printing press by taking a loan of $ 1,000,000 for 3 years from Uk Bank Limited. The loan bears a compound annual interest rate of 10 percent and calls for equal annual installment payments at the end of each year for 3 years. a) What is the amount of annual payments? b) Prepare loan amortization schedule. c) What fraction of payment made in year 2 represents the principal? (4+4+2)
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