Question: Please do it manually, not with excel. Thankyou. 7. A 10-year loan of $10 00-0 at i(1) = 11% is to be repaid by the

Please do it manually, not with excel. Thankyou. 7. A 10-year

Please do it manually, not with excel. Thankyou.

7. A 10-year loan of $10 00-0 at i(1) = 11% is to be repaid by the sinking-fund method, with interest and sinking-fund payments made at the end of each year. The rate of interest earned in the sinking fund is i(1) = 5%. Immediately after the 5th year's payment, the lender requests that the outstanding principal be repaid in one lump sum. Calculate the amount of extra cash the borrower has to raise in order to extinguish the debt

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