A debt of $1500 bearing at 12% compounded annually is to be discharged by the sinking...
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A debt of $1500 bearing at 12% compounded annually is to be discharged by the sinking fund method. If six annual deposits are made into a fund which pays 6% compounded monthly. a. Find the annual interest payment (3 marks) b. Find the size of the annual deposit into the sinking fund. (2 marks) c. What is the annual cost of this debt? (2 marks) d. Construct the sinking fund schedule. (3 marks) Period Interest Sinking Fund Interest Deposit earned Sinking Fund Balance Net amount loan A debt of $1500 bearing at 12% compounded annually is to be discharged by the sinking fund method. If six annual deposits are made into a fund which pays 6% compounded monthly. a. Find the annual interest payment (3 marks) b. Find the size of the annual deposit into the sinking fund. (2 marks) c. What is the annual cost of this debt? (2 marks) d. Construct the sinking fund schedule. (3 marks) Period Interest Sinking Fund Interest Deposit earned Sinking Fund Balance Net amount loan
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Answer rating: 100% (QA)
a Annual interest payment 012 1500 180 b Let the annual deposit be ... View the full answer
Related Book For
Elementary Linear Algebra with Applications
ISBN: 978-0132296540
9th edition
Authors: Bernard Kolman, David Hill
Posted Date:
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