Make no payment and interest will double

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Reference no: EM132538012

In China, there is a declaration of an emergency due to COVID-19 on May 1st. Its a virus and its killing many and the govenrment has shutdown all businesses. Its spread to Europe and South America and some goverments have shutdown many businesses at this early stage. It is inevitable that the COVID-19 will come to Ontario. Its estimated that most businesses that have already shutdown may be shutdown from 6 to 12 months. Keep this in mind as the business owner and in your analysis.

The bank is expecting a payment on the loan, but has given you some options. You decide what's best for the business:

a) Made payment of $15,000 towards reducing the loan payable. This is as scheduled in the agreement.

b) Made payment of $30,000 towards reducing the loan payable. This would lessen the time outstanding for your loan so its paid off quicker, meaning less total interest.

Question 1: Make no payment and your interest will double for all remaining amounts outstanding

Reference no: EM132538012

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