On a loan of $13000, interest at 9% effective must be paid at the end of...

 

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On a loan of $13000, interest at 9% effective must be paid at the end of each year. The borrower also deposits $X at the beginning of each year into a sinking fund earning 5.4% effective. At the end of 14 years the sinking fund is exactly sufficient to pay off the loan. Calculate X. X-$ On a loan of $13000, interest at 9% effective must be paid at the end of each year. The borrower also deposits $X at the beginning of each year into a sinking fund earning 5.4% effective. At the end of 14 years the sinking fund is exactly sufficient to pay off the loan. Calculate X. X-$

Answer rating: 100% (QA)

To calculate the amount X that the borrower needs to deposit at the beginning of each year into th... View the full answer