Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

10603, 10602, 13683,10152, 198448 are all wrong. A loan of L is taken over ten years and will be repaid using the sinking fund method

image text in transcribed

10603, 10602, 13683,10152, 198448 are all wrong.

A loan of L is taken over ten years and will be repaid using the sinking fund method with equal size quarterly payments (i.e. end of quarter) each of size 387.57 at a nominal annual interest rate of % compounded quarterly. The outstanding balance for this loan after the 20th payment is 0.59774L. Calculate L. Give your answer rounded to the nearest whole number (i.e. X)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Analytical Finance Volume I

Authors: Jan R. M. Röman

1st Edition

3319340263, 978-3319340265

Students also viewed these Finance questions