If the interest on the sinking fund in Question 27.11 were at 8%, how much would the

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If the interest on the sinking fund in Question 27.11 were at 8%, how much would the annual payments into it be?


Data From Question 27.11

A condition of a seven-year loan of £70,000 is that the borrower will pay equal annual amounts into a sinking fund so that it accumulates at the end of the seven years to the amount of the loan. The sinking fund will earn interest at 6% per annum. How much should be paid into the sinking fund each year?

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