A borrower takes out a loan of $5,000 for 2.25 years. Construct a sinking
fund schedule if the lender receives 9% effective on the loan per year, with
interest payments payable at the end of each quarter, and if the borrower accumulates
a sinking fund with semiannual deposits earning 8% compounded
quarterly.

Answer rating: 100% (QA)

To construct a sinking fund schedule we need to calculate the quarterly interest payments and the se... View the full answer