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Solution to Sinking Fund and Amortization Problems

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A company wishes to set up a sinking fund in an account that pays 4.3% interest compounded quarterly to repay a debt of $325,000 within 4 years explain to the company how much its payment should be pay off its debt along with how much interest will be accrued during 4 years ?

An organization has a $50,000 loan that is to be amortized over 10 years create an amortization schedule for a loan at 7.5% interest compounded monthly and if the company wanted to pay the loan off in 5 years?

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Solution Summary

This contains the attached document for the solutions to the indicated problems. The solution contains explanations and step-by-step procedures on how to use the needed formula and on how the answers are obtained.

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Problem:
1. A company wishes to set up a sinking fund in an account that pays 4.3% interest compounded quarterly to repay a debt of $325,000 within 4 years. Explain to the company how much its payment should be pay off its debt along with how much interest will be accrued during 4 years
2. An organization has a $50,000 loan that is to be amortized over 10 years. Create an amortization schedule for a loan at 7.5% interest compounded monthly ...

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