A $10000 loan will be repaid at the end of five years by a sinking fun that
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Question:
A $10000 loan will be repaid at the end of five years by a sinking fun that earns 12% compounded semi-annually. The interest rate on the loan is 8% compounded semi-annually.
a). What is the total cost to the debtor at the end of each 6 months?
b). Find the sinking fund interest income for the 10th period.
c). What is the book value of the debt at the end of the 10th period?
Related Book For
College Mathematics for Business Economics Life Sciences and Social Sciences
ISBN: 978-0321614001
12th edition
Authors: Raymond A. Barnett, Michael R. Ziegler, Karl E. Byleen
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