If the interest on the sinking fund in Question 45.9 were at 7 per cent, how much
Question:
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?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Frank Woods Business Accounting Volume 2
ISBN: 9780273693109
10th Edition
Authors: Frank Wood, Alan Sangster
Question Posted: