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Payment of interest over the length of loan amortization

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Reference no: EM132608921

Mr Ali is looking to borrow an amount of Rs 50000 from Bank at a compound annual interest rate of 15%.

  1. Amortize the loan if annual payments are made for 15 years.
  2. Why there is no similar payment of interest over the length of loan amortization?
  3. Will it be Advantageous or Disadvantageous for Mr Ali to pay all of the loan principal amount and accumulated interest at the maturity date as lump sum? If we would have been Mr Ali Place, what might have had our Decision?

Reference no: EM132608921

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