A condition of an 8-year loan of 40,000 is that the borrower will pay equal annual amounts
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A condition of an 8-year loan of £40,000 is that the borrower will pay equal annual amounts into a sinking fund so that it accumulates at the end of the 8 years to the amount of the loan. The sinking fund will earn interest at 5 per cent per annum. How much should be paid into the sinking fund each year?
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The sinking fund formula is A P 1 rn 1 where A is the annual payment int...View the full answer
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Related Book For 
Frank Woods Business Accounting Volume 2
ISBN: 9780273693109
10th Edition
Authors: Frank Wood, Alan Sangster
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