Question: Cindy borrows $ 1 3 , 8 0 0 for twelve years at an annual effective interest rate of i . She accumulates the amount
Cindy borrows $ for twelve years at an annual effective interest rate of i She accumulates the amount necessary to repay the loan by a sinking fund. Cindy makes a payment of P at the end of each of the twelve years of the loan period; each includes payment on the loan at an annual effective interest rate of i and payment into a sinking fund on which the annual effective interest rate is If the annual effective rate on the loan had been i instead of i Cindy's total annual payment would have been P Find the amount PRound your answer to the nearest cent.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
