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Branches and plans to buy office for new operation

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Reference no: EM133218634

Case Study: Richard Liu is the CEO of the XYZ company in the state of NSW, Australia. He is interested in increasing the number of branches and plans to buy an office for the new operation. Therefore, he has discussed this with the PQR bank manager and took a loan of 375000 for 7 years with several interest rates such as 4, 4.5, 5, 5.5, 6, 6.5 and 7 accordingly, which will cover the cost of the building. Now you will require to give the following questions answer:

1. Assign a variable called loanAmount with the value 375000.

2. Assign an array called interestRate with 7 numbers, 4, 4.5, 5, 5.5, 6, 6.5 and 7.

3. With a single expression to work out the remaining principal if a repayment of $50000 is made after a year of interest being added to loanAmount for each of these interestRates (no compounding).

4. Calculate `principalPaid`, based on repaying an annual sum of $25000 (no compounding).

5. Do the following: `data.frame(loanAmount, annualInterest, principalPaid)

Reference no: EM133218634

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