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Question 02 Microsoft lends $10,000,000 for small projects in rural areas of India. The loan has to be refunded at 8.5% interest rate compounded annually. Repayment should be made in such a way that an amount A must be paid for the first 8 years, amount 3A for next 5 years and amount 5A for remaining years, keeping the interest rate 8.5%. Total time period for which the loan is allotted is 20 years. Find the value of A and draw cash flow diagram.

Question 02 Microsoft lends $10,000,000 for small projects in rural areas of India. The loan has to be refunded at 8.5% interest rate compounded annually. Repayment should be made in such a way that an amount A must be paid for the first 8 years, amount 3A for next 5 years and amount 5A for remaining years, keeping the interest rate 8.5%. Total time period for which the loan is allotted is 20 years. Find the value of A and draw cash flow diagram.

Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Question 02 Microsoft lends $10,000,000 for small projects in rural areas of India. The loan has to be refunded at 8.5% interest rate compounded annually. Repayment should be made in such a way that an amount A must be paid for the first 8 years, amount 3A for next 5 years and amount 5A for remaining years, keeping the interest rate 8.5%. Total time period for which the loan is allotted is 20 years. Find the value of A and draw cash flow diagram.
Transcribed Image Text:Question 02 Microsoft lends $10,000,000 for small projects in rural areas of India. The loan has to be refunded at 8.5% interest rate compounded annually. Repayment should be made in such a way that an amount A must be paid for the first 8 years, amount 3A for next 5 years and amount 5A for remaining years, keeping the interest rate 8.5%. Total time period for which the loan is allotted is 20 years. Find the value of A and draw cash flow diagram.
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