X

business and securities (question one-c)

year 1 2 3 4

968,000.0 1,064,800. 1,149,984.0

880,000.00 0 00 0
annuity(1/K
e-g)       8.333

968,000.0 1,064,800. 9,582,816.6

880,000.00 0 00 7

DF (20%) 0.83 0.69 0.58 0.58

671,792.0 5,548,450.8
733,040.00 0 616,519.20 5

7,569,802.
NPV 05

Q2(a)
annual amortization
period
s start interest total repayment end

650,000.0
1 500,000.00 150,000.00 0 205,291.00 444,709.00

578,121.7
2 444,709.00 133,412.70 0 205,291.00 372,830.70

484,679.9
3 372,830.70 111,849.21 1 205,291.00 279,388.91

363,205.5
4 279,388.91 83,816.67 8 205,291.00 157,914.58

205,288.9
5 157,914.58 47,374.37 6 205,291.00 (2.04)