Problem 4 (Rescheduling) A) ICON company borrow 2,000,000 SAR from the bank in 2021, the bank interest was 3% per year compound, and the loan was for 10 years How much money will ICON Co pays the bank every year?

Problem 4 (Rescheduling) A) ICON company borrow 2,000,000 SAR from the bank in 2021, the bank interest was 3% per year compound, and the loan was for 10 years How much money will ICON Co pays the bank every year?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Problem 4 (Rescheduling)

A) ICON company borrow 2,000,000 SAR from the bank in 2021,

the bank interest was 3% per year compound, and the loan was for 10 years

How much money will ICON Co pays the bank every year?

Yearly Payment =

B) If ICON Co made the first two payments in 2021 & 2022, and then faces some financial issue and want to decrease the yearly payments amount to be below 150,000 SAR per year

Please help ICON to reschedule the remaining amounts & decide how much money they need to pay every year & for how many years?

New Yearly Payment =

No of year =

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Solution 1.

VIEW

Loan repayment schedule:

VIEW

Yearly payment:

VIEW

Solution 2. New loan repayment schedule:

VIEW

Solution 2

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