Andrew borrows 360,000 at i=.05. He repays this loan by paying off only the interest due at the end of each year to the lender and depositing a level amount Y at the end of each year into a sinking fund account offering 8% APY so as to accumulate the full balance of the loan amount in the sinking fund at the end of 20 years.

What value Y must he deposit into the SF account at the end of every year?

Answer rating: 100% (QA)

FUTURE VALUE INTEREST FACTOR FOR ANNUITY FOR 20 ... View the full answer