How much should the bank lend to arti

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Reference no: EM131219680

You are a credit manager for second bank of Telingua. your bank is considering a loan to arti choke a property a property terlingua. the structure of the loan is such that arti choke will agree to pay back 26 million per year for 8 years with the first payment in one year. given the risk of arti's company you think that tye appropriate interest rate should be 20% per year compounded annually. how much should the bank lend to arti?

Reference no: EM131219680

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