Problem 3 (Required, 25 marks) A bank has offered a discounted loan. It is given that the loan charg

Problem 3 (Required, 25 marks) A bank has offered a discounted loan. It is given that the loan charges interest at an annual

Problem 3 (Required, 25 marks) A bank has offered a discounted loan. It is given that the loan charges interest at an annual nominal discount rate dm) convertible m-thly (where m is positive integer) Borrower A has entered into n-year discounted loan and borrow $5000. It is given that the actual amount that borrower receives now is $4630. Recently, another borrower B has entered into 2n-year discounted loan and borrow $10000 Questions (a) Calculate the amount of interest charged by the bank in borrower B's loan (b) Suppose that the borrower B negotiates with the bank and agree that the borrower can pay the interest (together with the principal $10000) after 2n year. To do so, the bank decides to charge interest at an annual nominal discount rate 2dCm) convertible 2m-thly. Calculate the total repayment amount paid by the borrower after 2n years. (OHint: It is impossible to find the values of all unknowns d(m), m and n. To solve this problem, you just need the value of one unknown (combination of dm), m and n).) (т)

 
Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount!
Use Discount Code "Newclient" for a 15% Discount!

NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.