Question - How much money can be borrowed if company X can make 15 annual payments (end of year) of $100,000 based on an annual interest of 8%?
The company X plans to borrow $50 million to finance a new hotel. If the annual interest rate is 8$ and the term of the loan is 30 years, what is the annual payment? Over the life of the loan, how much interest will be paid?
Same facts as in part 2, except assume the term of the loan is 15 years. What is the annual payment and how much interest will be paid over the life of the loan?