Calculate the annual end-of-year loan payment

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a. Mr. Mamun borrowed Tk. 115,000 at a 12.5% annual rate of interest to be repaid over 5 years. The loan is amortized into five equal end-of-year payments. The loan has processing fees of 1.25%.

Requirements:

I. Calculate the annual end-of-year loan payment.

II. Prepare a' loan amortization schedule showing the interest and principal breakdown of each of the five loan payments.

III. Explain why interest decreased gradually in this process?

b. Define agency problem? Explain different mechanisms to minimize the agency problem of a business enterprise in Bangladesh, label some high cases from Bangladesh.

Reference no: EM132615801

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