Question

Ethio engineering Corporation has signed a road construction agreement contract with Ethiopian Road Authority to renew and construct-the main road from Addis Ababw to Diredawa with a contract amount of 250million, 80% of the contract amount will be financed from the loan released by Commercial Bank of Ethiopia at an annual nual interest rate of 13% to be paid as per the following terms of payment At the end of the 1 At the end of the 2 At the end of the 3 At the end of the 4 At the end of the 5th year year year year year At the end of the 6th year 10% of the principal 20% of the principal 30% of the principal 20% of the principal ....15% of the principal 5% of the principal Task 4.1. Determine

A Amount of loan from Commercial Bank Of Ethiopia
B. Amount of Principal and interest repayment for the 20 year
C Amount of outstanding balance at the end of the year including interest expenses
D Total interest of the loan paid all loan ​

Answer 1

A. The amount of the loan from the Commercial Bank of Ethiopia is 250 million x 80% = 200 million.

B. The total amount of principal and interest repayment for the 20-year loan is not specified in the information given. To calculate this, you would need to know the total principal and the total interest over the 20-year period.

C. To calculate the outstanding balance at the end of each year, you would need to know the principal and interest payments made during each year and the annual interest rate. You can then use the following formula:

Outstanding balance = principal + interest - payments

D. To calculate the total interest paid over the 20-year loan period, you would need to know the annual interest rate and the principal. You can then use the following formula:

Total interest = principal x annual interest rate x number of years

Note: These calculations assume that the interest rate is constant throughout the loan period and that the payments are made on schedule. If the interest rate or payments vary, the calculations will be more complex.

Step-by-step explanation: