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I have a huge problem in solving this Question. Q: Multinational group of companies has taken loan from Bank in 2015 which they have to repay in year 2022 @ 14% interest rate on biannual compounding. The amount due in 2022 is 1,500,000. Calculate the amount loan taken by Multinational Group in 2015 and the total amount of interest they have to pay to bank during loan period. Plz help me asap.

Y.Khan
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    Hint: questions including "asap" are automatically ignored by many people. – David Mar 23 '17 at 09:40
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  • https://www.wolframalpha.com/input/?i=1500000%3D+A(1%2B.142)%5E14 – shrey Mar 23 '17 at 10:10

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Let be $L$ the loan at $t=2015$ and $S=1,500,00$ the amount at $t=2022$, that is after $n=7$ years, and $i^{(1/2)}=14\%$ the interest compounded biannually.

We have $$ L=\frac{S}{\left(1+\frac{i^{(1/2)}}{1/2}\right)^{n/2}}=\frac{1,500,00}{\left(1.28\right)^{7/2}}\approx 632,203 $$

alexjo
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