Question: Value established in # 3 = $ 5 , 0 0 0 , 0 0 0 . 0 0 Stage 3 : Amortize an Annuity
Value established in # $
Stage : Amortize an Annuity to Pay Loan Once Coco's Closet has the future value established of $ they would like to drop that money into an ordinary annuity that pays out the money over the same time period and payment plan as any loan that they are required to take out to complete the expansion. The payment of an annuity to a bank or another entity even oneself is an amortization of the funds. The amount in the sinking fund is placed in an annuity that is amortized at monthly over a fixed period of years. a What will the monthly amortized payments be over the next years? b How much will Coco's Closet earn in total? c What is the interest that Coco's Closet earns from the annuity? d Combined with the interest earned in the sinking fund, what is the total amount of interest earned?
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