A loan of $100,000 at 8% per annum is to be repaid over 10 years; $20,000 by
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A loan of $100,000 at 8% per annum is to be repaid over 10 years; $20,000 by the amortization method and $80,000 by the sinking-fund method, where the sinking fund can be accumulated with annual deposits at j4 = 5%.
What extra annual payment does the above arrangement require as compared to repayment of the whole loan by the amortization method?
Related Book For
Finite Mathematics and Its Applications
ISBN: 978-0134768632
12th edition
Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair
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