Short and long term loans, math homework help

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1. Not more than 1000 words 2. To be submitted only through MOODLE PORTFOLIO: 2 (10 marks) Apply your understanding about the present value and future value of annuities and prepare TWO Loan EMI (EMI = Equated Monthly Installments) payment schedules based on the following instructions, 1. Loan Summary (1% marks) and schedule of Short term loan (3% marks) 2. Loan Summary (1% marks) and schedule of Long term loan (3% marks) Guidelines: 1. Suggested Short term Loan period is 1 year to 3 years 2. Suggested Long term Loan period is 7 years and above 3. Each loan summary should not be more than 150 words (Total max. words 300) a. What type of loan is chosen? b. Why it is chosen? C. Interest rate, number of years (loan period) and loan amount to be assumed and clearly stated d. Starting date and ending date of the loan period is to be mentioned 4. The payment schedule should cover the following, a. Serial No. b. Date (period) C. EMI amount (EMI = Equated Monthly Installments) d. Principal component of the EMI e. Interest component of the EMI f. Interest paid - to date g. Principal paid - to date
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Running Head: SHORT AND LONG TERM LOANS

Short and long term loans
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SHORT AND LONG TERM LOANS
The meaning of a present value annuity is the sum of the money that should be put into

investment as at the present time in order to guarantee some payment that will occur in the future
but on the other side a future value annuity can be taken as amount that the current investment
that have been made...


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