A firm obtained a $3 million low-interest loan from a government agency to build a factory in an economically depressed region. The loan is to be repaid in semi-annual payments over 15 years, and the first payment is due three years from today, when the firm's operations are expected to be well established.
a) What will the payments be if the interest rate on the loan is 6% compounded semi-annually?
b) What is the nominal amount of interest that will be paid over the lifetime of the loan?

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The Answer of A firm obtained a $3 million low-interest loan from a government agency to build a factory in an economically depressed region. The loan is to be repaid in semi-annual payments over 15 years, and the first payment is due three years from today, when the firm's operations are expected to be well established.
a) What will the payments be if the interest rate on the loan is 6% compounded semi-annually?
b) What is the nominal amount of interest that will be paid over the lifetime of the loan?

A Firm Obtained a $3 Million Low-Interest Loan from a Government