BUSINESS FINANCE 5 BUSINESS FINANCE

Running head: BUSINESS FINANCE
Business Finance
Name of the Student:
Name of the University:
Authors Note:

BUSINESS FINANCE
1
Table of Contents
Answer to 1.1:............................................................................................................................3
Answer to 1.2:............................................................................................................................3
Answer to 1.3:............................................................................................................................3
Answer to 1.4:............................................................................................................................3
Answer to 1.5:............................................................................................................................4
Answer to 1.6:............................................................................................................................4
Answer to 1.7:............................................................................................................................5
Answer to 1.8:............................................................................................................................5
Answer to 1.9:............................................................................................................................5
Answer to 2.a:............................................................................................................................5
Answer to 2.b:............................................................................................................................6
Answer to 2.c:............................................................................................................................6
Answer to 3:...............................................................................................................................7
Answer to 4:...............................................................................................................................7
Answer to 5.a:............................................................................................................................8
Answer to 5.b:............................................................................................................................8
Answer to 5.c:............................................................................................................................8
Answer to 5.d:............................................................................................................................8
Answer to 6.a:............................................................................................................................9
Answer to 6.b:............................................................................................................................9
Answer to 6.c:............................................................................................................................9
Answer to 7:.............................................................................................................................10
Answer to 8.a:..........................................................................................................................10
Answer to 8.b:..........................................................................................................................10

BUSINESS FINANCE
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Answer to 8.c:..........................................................................................................................10
Answer to 8.d:..........................................................................................................................11
Answer to 8.e:..........................................................................................................................11
Answer to 8.f:...........................................................................................................................11
Answer to 9:.............................................................................................................................11
Answer to 10.a:........................................................................................................................13
Answer to 10.b:........................................................................................................................13
Answer to 10.c:........................................................................................................................14
Answer to 10.d:........................................................................................................................14
Answer to 10.e:........................................................................................................................14
Reference and Bibliography:....................................................................................................15

BUSINESS FINANCE
3
Answer to 1.1:
Particulars Amount
Total interest rate 8%/12 = 0.67%
Amount for loan $20,000,000.00
Time 10 * 12 = 120
Total monthly payments $ 242,655.19
Answer to 1.2:
Particulars Amount
Total interest rate 8%/12 = 0.67%
Amount for loan $ 20,000,000.00
Interest Payment 1st year $ 133,333.33
Answer to 1.3:
Particulars Amount
Interest Payment 1st year $ 133,333.33
Total monthly payments $ 242,655.19
Principal Payment 1st year $ 109,321.86
Answer to 1.4:
Particulars Amount
Total monthly payments $ 242,655.19
Total interest rate 8%/12 = 0.67%
Time 7 * 12 = 84