Question

If the company repaid the loan in a lump sum amount after 2 years, what was the amount of the payment

Answer 1

The correct answer is "$2.18 million".

Step-by-step explanation:

The given problem seems to be incomplete. The attachment of the complete question is attached below.

Given that,

Principle,

= 1.8 million

Interest rate,

= 10%

Number of years,

= 2 years

Now,

The factor will be:

=
`(1+0.10)^2`

=
`(1.1)^2`

=
`1.21`

hence,

The amount of payment will be:

=
`Principle* factor`

=
`1.8* 1.21`

=
`2.18 \ million`