Question 1: What is the difference between present value and net present value?
Question 2: XYZ Ltd. recently obtained a loan of Rs 50000 for a period of 10 years. The loan carries an 8%compound annual interest rate and calls for annual installment payments of Rs 7451.47 at the end of each of the next 10 years.
Required:
a) How much of the first year's payment is principle?
b) Find the total interest will be paid over the life of the loan?