Mohammad tried one last time to explain the loan structure offered by the company’s UAE bank. His boss just stared at him. Mo explained the detailed calculation of annual interest and principal payments, step-by-step, as detailed by the bank. The loan was for USD5 million, for five years, with an 8.200% interest rate.
Step 1: Calculate interest on Loan Principal for one year
Step 2: Multiply that interest by the number of years of the loan. The bank labeled this "Total Interest."
Step 3: Add the calculated Total Interest to the Loan Principal.
Step 4: Divide this calculated total by the number of years of the loan. This is the annual payment due on the loan (principal and interest).
Step 5: Using the calculated annual payment from step 4, structure the repayments to maake all interest payments (totaling to Total Interest from Step 2) up-front. Once all interest has been paid, the remaining cash flows associated with the annual payment are considered repayment of principal.
a. Following the 5 steps described, lay out the principal and interest payments on the loan agreement.
b. Calculate effective cost of funds on the loan agreement (the all-in-cost).
c. Lay out the principal and interest payments on the same loan if it was a 'normal' amortizing loan.
d. What is your assessment of the loan?

Jason day company had bonds outstanding with a maturity value of $300,000. on april 30, 2017, when these bonds has an unamortized discount of $10,000, they were called in at 104. to pay for these bonds, day had issued other bonds a month earlier bearing a lower interest rate. the newly issued bonds had a life of 10 years. the new bonds were issued at 103 (face value $300,000).

rural residential development company and suburban real estate corporation form a joint stock company. the longest duration a joint stock company can be formed for is

During january 2018, the following transactions occur: january 1 purchase equipment for $20,600. the company estimates a residual value of $2,600 and a five-year service life. january 4 pay cash on accounts payable, $10,600. january 8 purchase additional inventory on account, $93,900. january 15 receive cash on accounts receivable, $23,100 january 19 pay cash for salaries, $30,900. january 28 pay cash for january utilities, $17,600. january 30 firework sales for january total $231,000. all of these sales are on account. the cost of the units sold is $120,500. the following information is available on january 31, 2018. depreciation on the equipment for the month of january is calculated using the straight-line method. the company estimates future uncollectible accounts. at the end of january, considering the total ending balance of the accounts receivable account as shown on the general ledger tab, $4,100 is now past due (older than 90 days), while the remainder of the balance is current (less than 90 days old). the company estimates that 50% of the past due balance will be uncollectible and only 3% of the current balance will become uncollectible. record the estimated bad debt expense. accrued interest revenue on notes receivable for january. unpaid salaries at the end of january are $33,700. accrued income taxes at the end of january are $10,100