Grace period

CFA Level II FRA
#1

How should we show in our financial statements this situation?

  1. Borrow $300 15% rate with grace period: 1 year for interest and 4 years for principal;

  2. Invest $100 in year 1, year 2 and year 3;

  3. amortization of investment is 5 year.

I dont understand, when and in what account I should put Investments in year 1…3 and borrowed money…

#2

Is this from a specific question you got somewhere?

I’ve never encountered this one.

#3

No, I’ve just imagined this case.