Question

XYZ company used a loan of 7500000 TL from the bank for 10 years to purchase a CNC machine tool. For this loan, the bank will apply 20% interest for the first 3 years, 22% for the second three years and 26% for the last 4 years. The bought bench has 100000 TL repairs each year and 50000 TL maintenance expenses each year. At the end of 10 years

a) What is the total amount to be paid to the bank?

b) What are the repair and maintenance costs?

c) How much is the total expense?

Answer 1

Solution :-

Loan =7500000,

Interest rate = 20%, 22%, 26%.. years =10..

a):-

• Amount after ist 3 years :-

= 7500000(1+20%)^3 = 7500000 * 1.728 = 12960000 TL

• Amount after 6 years :-

= 12960000(1+22%)^3 =12960000 *1.81 = 23457600 TL

• Amount to be paid to the bank after 10 years

= 23457600(1+26%)^4 = 23457600 * 2.52 = 59113152 TL

b) :- The repair and maintenance cost for 10 years :-

= (100000+50000)* 10 = 150000 * 10 = 1500000 TL

c) :- Hence, The total expense for the company is

= 59113152 + 1500000 = 60613152 TL

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