A loan of £ 2,120,000 is repayable by equal quarterly payments for 15 years. The effective rate of interest is 6% pa. iv. What is the total interest paid after the 25th payment? v. What is the amount of capital portion in the 54th payment?

A loan of £ 2,120,000 is repayable by equal quarterly payments for 15 years. The effective rate of interest is 6% pa. iv. What is the total interest paid after the 25th payment? v. What is the amount of capital portion in the 54th payment?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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A loan of £ 2,120,000 is repayable by equal quarterly payments for 15 years. The effective rate of interest is 6% pa.

iv. What is the total interest paid after the 25th payment?
v. What is the amount of capital portion in the 54th payment?

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