A $27,500 bond loan was cleared in 5 years by setting up a sinking fund that was

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A $27,500 bond loan was cleared in 5 years by setting up a sinking fund that was earning 5.50% compounded semi-annually. The deposits were made to the fund at the end of every 6 months.

a. Calculate the size of the periodic payments deposited.

b. What was the total interest earned by the fund?

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Personal Finance

ISBN: 978-0134724713

4th Canadian edition

Authors: Jeff Madura, Hardeep Singh Gill

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Posted Date: Mar 15, 2024 11:15 AM

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A $27,500 bond loan was cleared in 5 years by setting up a sinking fund that was

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To calculate the size of the periodic payments deposited we can use the formula for the future value ... View the full answer

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