Grade-1 Cost Engineer Examination

Practice session

A construction project has a 2-year construction period. The loan schedule is as follows: Year 1 loan RMB 40,000,000; Year 2 loan RMB 60,000,000. Loans are disbursed evenly throughout each year. The effective annual loan interest rate is 6%. Assuming no interest is paid during construction, what is the total compounded Construction Period Interest (建设期利息) accumulated at the end of the construction period?

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