A public body grants Valmeyer an interest-free loan of 500,000, repayable in one instalment in 3 years. Case assumption: the market rate for a comparable loan is 6% a year. Calculate the initial value of the loan by discounting the final repayment, then the benefit of the loan. Round to the euro.
- Proceeds of the government loan
- 500,000
- Market rate adopted (case assumption)
- 6 %
- Period before repayment
- 3