Annual Principal and Interest Payments on Loan Assignment | Homework For You

Delos borrowed €80 million two years ago. The loan​ agreement, an amortizing​ loan, was for six years at 8.628% interest per annum. Delos has successfully completed two years of​ debt-service, but now wishes to renegotiate the terms of the loan with the lender to reduce its annual payments.

a. What were​ Delos’s annual principal and interest payments under the original loan​ agreement?

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b. After two years of debt​ service, how much of the principal is still​ outstanding? create amortization table

c. If the loan were restructured to extend another two​ years, what would be the annual payments—principal and​ interest? Is this a significant reduction from the original​ agreement’s annual​ payments? Create amortization table. Get Finance homework help today