Meriton Ltd is purchasing a medium crane for the business at a cost of $31,500

Finance Nov 20, 2020

Meriton Ltd is purchasing a medium crane for the business at a cost of $31,500. AGC Finance Ltd has offered a term loan over eight years at a rate of 12% per annum. The loan will be repaid by equal monthly instalments with the first repayment made on the day the loan proceeds are paid to Meriton Ltd.
(i) What type of annuity payment is this?
(ii) Calculate the amount of each loan instalment.