Question: Bob is repaying a loan L over n periods using the sinking fund method. The interest of the loan is i and the interest rate
Bob is repaying a loan L over n periods using the sinking fund method. The interest of the loan is i and the interest rate earned by the sinking fund is j.The total amount spent by Bob at the end of each period is 1 interest on the loan plus sinking fund deposit). Find an expression of L as a function of n, i and j. Prove, i using succinct arguments, that if ; > i, then L > ami Bob is repaying a loan L over n periods using the sinking fund method. The interest of the loan is i and the interest rate earned by the sinking fund is j.The total amount spent by Bob at the end of each period is 1 interest on the loan plus sinking fund deposit). Find an expression of L as a function of n, i and j. Prove, i using succinct arguments, that if ; > i, then L > ami
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
