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the loan is allotted is 20 years. What sum of annuities still remains to be paid just after payment is made? (Hint: Take $10,000Kequivalent to the present worth of all the 12th

the loan is allotted is 20 years. What sum of annuities still remains to be paid just after payment is made? (Hint: Take $10,000Kequivalent to the present worth of all the 12th

FINANCIAL ACCOUNTING
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 03 Microsoft lends $10,000,000 for small projects in rural areas of India. The loan has to be refunded at 8% interest rate compounded annually. Repayment should be made in such a way that an amount A must be paid for the first 8 years, amount 3A for next 5 and years amount 5A for remaining years, keeping the interest rate 8%. Total time period for which the loan is allotted is 20 years. What sum of annuities still remains to be paid just after payment is made? (Hint: Take $10,000Kequivalent to the present worth of all the 12th these annuities)
Transcribed Image Text:Question 03 Microsoft lends $10,000,000 for small projects in rural areas of India. The loan has to be refunded at 8% interest rate compounded annually. Repayment should be made in such a way that an amount A must be paid for the first 8 years, amount 3A for next 5 and years amount 5A for remaining years, keeping the interest rate 8%. Total time period for which the loan is allotted is 20 years. What sum of annuities still remains to be paid just after payment is made? (Hint: Take $10,000Kequivalent to the present worth of all the 12th these annuities)
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