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Sinking Fund to Repay Loans

$6000 is borrowed at 10% compounded semi-annually. The amount is to be paid back in 5 years. If a sinking fund is established to repay the loans and interest in 5 years, and the fund earns 8% compounded quarterly, how much will have to be paid into the fund every 3 months?

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the present value of the borrowed amount is calculated by:
FV= ...

Solution Summary

This solution is comprised of a detailed explanation to answer how much will have to be paid into the fund every 3 months.

$2.19