Assume that in 2017, you purchased a car at Br. 25,000, 000.00 of which 60% of the purchase is covered by credit facility from AIB. The loan will be repaid within 5 years at equal installment quarterly at cost of 12% interest rate. The total service charge and cost related to credit facility is Br. 2,000.00 for the first year and Br. 25.000 for the second year of loan period. Assuming that the bank policy is simple interest rate on outstanding loan and advances, perform the following required tasks.
Task 1. Calculate the principal payment and cost of loan (interest and related service charge for the first year of loan period).
Task 2. Calculate the principal payment and cost of loan (interest and related service charge for the second year of loan period).
Task 3. Calculate the outstanding balance of loan at end of year 3 of loan period.
Task 4. Calculate the principal loan repaid and interest at end of year 3 of loan period
Task 5. Calculate the principal loan repaid and interest at end of 5 year loan period