Calculate the total interest expense paid by best yield farm

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Question 1: Promise Bank Ltd. issued a long term loan $10 million in favor of Best Yield Farms on January 1, 2018. The terms of loan include interest payable in advance (beginning of year) @ 6 months K+1.5% with first installment due on at the time of receipt of loan. The principal payment is fixed at $1.5mln starting from 2019. Assume KIBOR to be 10%, 11.5%. 13% for the first three installments, calculate the total interest expense paid by Best Yield Farms in first three years.

Reference no: EM132499691

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