A condition of a ten-year loan of 20,000 is that the borrower will pay equal annual amounts

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A condition of a ten-year loan of £20,000 is that the borrower will pay equal annual amounts into a sinking fund so that it accumulates at the end of the ten years to the amount of the loan. The sinking fund will earn interest at 8 per cent per annum. How much should be paid into the sinking fund each year?

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Business Accounting

ISBN: 9780273619826

7th Edition

Authors: Frank Wood, Alan Sangster

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