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(7 marks) Lenova Corp makes computer screens. The company has a loan that requires repayment of $20,000, $40,000, and $6
Posted: Sat Nov 27, 2021 5:14 pm
by answerhappygod
- 7 Marks Lenova Corp Makes Computer Screens The Company Has A Loan That Requires Repayment Of 20 000 40 000 And 6 1 (34.47 KiB) Viewed 71 times
(7 marks) Lenova Corp makes computer screens. The
company has a loan that requires repayment of $20,000, $40,000, and $60,000 in 9 months, 15 months, and 21 months, respectively. The loan interest rate is 6.8% p.a., compounded monthly. Lenova business has been booming, so it would like to renegotiate this loan to repay sooner. It would like to pay the loan back in only 2 installments in 3 months and 6 months. The bank will agree to this only if the following conditions are accepted: • payment #1 is three times the size of payment 2. • the new interest rate will be 7.0% p.a. compounded quarterly. How much will Lenova's two payments be under the new renegotiated loan structure?