Amy plans to repay a loan of $360,000 by making payments of $60,000 at the end of each year for 10 years. She replaces the capital by means of a sinking fund and pays interest on the loan at an annual effective rate of 25/3 %. Calculate the effective annual interest rate earned by the sinking fund.

Answer rating: 100% (QA)

To calculate the effective annual interest rate earned by the sinking fund we need to first determin... View the full answer