x 833 Thsee edter natives acebein econsidew olEsta bish e l

x 8-33 - Thsee edter natives, acebein econsidew olEsta bish e line e crec \' unth fe houn fe cet atea Interest rate ee8%. TLe beent wu charee a cee of 45,000 to esterbissh he ine oe ereeft. Forso trode liss pplica Ceo Comm ?

Solution

Answer -

Option A -

Option B -

Option C -

Conclusion

Cost of Forgoing discount (Option B) is the lowest among the three.

Month	Principal	Interest	Total Payment	Balance	Loan Paid To Date
	(A)	(B)	(A + B)
	$ 5,00,000.00	$6,681.43	$ 5,06,681.43	$0.00	100.00%
1	$ 1,65,560.48	$3,333.33	$ 1,68,893.81	$ 3,34,439.52	33.11%
2	$ 1,66,664.21	$2,229.60	$ 1,68,893.81	$ 1,67,775.31	66.44%
3	$ 1,67,775.31	$1,118.50	$ 1,68,893.81	$0.00	100.00%
	Interest calculated is 14.10%
	Cost of Option A = 14.10%