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If the interest on the sinking fund in Question 45.9 were at 7 per cent, how much would the annual

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If the interest on the sinking fund in Question 45.9 were at 7 per cent, how much would the annual payments into it be?


Data from Question 45.9

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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Frank Woods Business Accounting Volume 2

Frank Woods Business Accounting Volume 2

ISBN: 9780273693109

10th Edition

Authors: Frank Wood, Alan Sangster

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Question Details
Chapter # 45- Interest, annuities and leasing
Section: Review Questions
Problem: 10
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Question Posted: September 10, 2023 10:20:12
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