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The Alpha Corporation obtains a bank loan that is disbursed as follows: Shs 320 million,...

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Finance

  1. The Alpha Corporation obtains a bank loan that is disbursed as follows: Shs 320 million, Shs 240 million, Shs 160 million and Shs 80 million at the beginning of years one, two, three, and five respectively. The loan is repaid in five equal annual installments of Shs 300 million at the end of years six to ten, and a final amount at the beginning of year 13. Given a rate of inflation of 4.5% per annum during the period, and if Alphas real cost of the loan is 17% per annum, what should the final repayment be?

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