company has arranged a four-year loan for $30,000 with simple annual interest
Question: A company has arranged a four-year loan for $30, 00…
A company has arranged a four-year loan for $30,000 with simple annual interest of 6% paid annually. In addition, it decides to pay back $10,000, $5000, and $3000 of the principal at the end of years 1, 2, and 3, respectively.
- a) Compete a cash flow table from the company’s perspective. Use the following table format.
- b) Draw a cash flow diagram to represent this loan from the company’s perspective.
End of year | Amount received | Principal paid | Principal outstanding | Interest paid | Total cash flow |
0 | |||||
1 | |||||
2 | |||||
3 | |||||
4 |
arranged a four-year loan for $30000 with simple annual interest company has arranged a four-year loan company has arranged a four-year loan for $30000 company has arranged a four-year loan for $30000 with simple company has arranged a four-year loan for $30000 with simple annual company has arranged a four-year loan for $30000 with simple annual interest four-year loan for $30000 with simple annual interest