$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?
Solution Preview
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.
... 1. A company wishes to set up a sinking fund in an ... that pays 4.3% interest compounded quarterly to repay a debt ... 2. An organization has a $50,000 loan that is ...
... What is the difference between an annuity and a sinking fund? ... When we repay the loan in equated installments, each installment contains an interest part ...
... On the outstanding portion of the loans, the amortization ... Year Annuity Interest of Annuity Repayment principal portion ... Let's talk about sinking funds. ...
... each payment to be made into a sinking fund so that ... Student Loans Student borrowers now have more options to choose ... allows from 12 to 30 years to repay the loan...
... So the amount of payment to the sinking fund is $2619.29. ... If they make all 300 payments, repaying the loan on schedule, how much interest will they pay? ...
... BOND MATURES AND THE ISSUER MUST REPAY THE LOAN... FASHION, IT MUST BE RECOGNIZED THAT SINKING FUNDS WILL AT ... BONDS THAT PROVIDE FOR A SINKING FUND ARE REGARDED AS ...
... that did little to require borrowers plan for repayment. ... However, as a borrower's sinking fund grew, it would ... defaulted loans from banks using funds from the ...
... If a sinking fund is established to repay the loan and interest in 5 years, and the fund earns 8% compounded quarterly, how much will have to be paid into the ...
... If they make all 300 payments, repaying the loan on schedule ... future value of ordinary annuity, monthly payment of mortgage, and payment to sinking fund, etc ...
