FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A $10000 loan will be repaid at the end of five years by a sinking fun that earns 12% compounded semi-annually. The interest rate on

A $10000 loan will be repaid at the end of five years by a sinking fun that earns 12% compounded semi-annually. The interest rate on the loan is 8% compounded semi-annually.

a). What is the total cost to the debtor at the end of each 6 months?
b). Find the sinking fund interest income for the 10th period.
c). What is the book value of the debt at the end of the 10th period?

Step by Step Solution

★★★★★

3.50 Rating (163 Votes )

There are 3 Steps involved in it

Step: 1

a This is the equivalent A that the debtor wouldve been paying ever... 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

College Mathematics for Business Economics Life Sciences and Social Sciences

College Mathematics for Business Economics Life Sciences and Social Sciences

Authors: Raymond A. Barnett, Michael R. Ziegler, Karl E. Byleen

12th edition

321614003, 978-0321614001

More Books

Students also viewed these Finance questions

Question

★★★★★
A loan of $10,000 was repaid at the end of 6 months. What amount (principal and interest) was repaid, if a 6.5% annual rate of interest was charged?

Answered: 1 week ago

Question

★★★★★
Write a research paper on an element of managing information systems?

Answered: 1 week ago

Question

★★★★★
What payments must be made at the end of each quarter to an RRSP earning 7.5% compounded annually so that its value 8 years from now will be $15,000?

Answered: 1 week ago

Question

★★★★★
Considering all of the below, recommend and justify a price for this deal. This is not easy to do. Put yourself in the shoes of the Robertson managers. Who wants it more? The buyer-Monmouth? The...

Answered: 1 week ago

Question

★★★★★
What is the effect of going through a natural disaster on the attitude of police chiefs about the goodness of the people in their city? A researcher studying this expects a more positive attitude...

Answered: 1 week ago

Question

★★★★★
Using a table similar to that shown in Figure 3.10, calculate 74 divided by 21 using the hardware described in Figure 3.8. You should show the contents of each register on each step. Assume both...

Answered: 1 week ago

Question

★★★★★
(A generalization of the law of total probability) Let B1, B2,, Bn be disjoint events on a sample space such that P(Bi) > 0, for all i = 1, 2,, n. Prove that for any event A on this sample space,...

Answered: 1 week ago

Question

★★★★★
Alina Sadofsky, who operates a small grocery store, has established the following policies with regard to the checkout cashiers: 1. Each cashier has his or her own cash drawer, to which no one else...

Answered: 1 week ago

Question

★★★★★
blossom supply Company wants to set up a division that provides copy and fax services to businesses. Customers will be kept in 20 days to pay for such services. The annual revenue division is...

Answered: 1 week ago

Question

★★★★★
Overview The milestone for Project One involves applying accounting principles and methods to long-term liabilities and equity. You will also evaluate these financial statement components for...

Answered: 1 week ago

Question

★★★★★
Ares Inc. acquires all of Artemis Co.'s assets and liabilities on January 1, 2034, for $75 million in cash. Artemiss reported assets consist of current assets of $38 million and plant and equipment...

Answered: 1 week ago

Question

★★★★★
Scenario Larry, the head of Marketing has heard about you. And at TNH Tires, like much of the rest of the world, the reward for good work is more work. Larry: Thank you so much for making time for...

Answered: 1 week ago

Question

★★★★★
Pick a resource and data set that CloudWatch monitors and collects. How would the use of CloudWatch make a difference in your cloud maintenance? How will you use the data gathered by CloudWatch? Will...

Answered: 1 week ago

Question

★★★★★
What is the overhead application rate per direct labor hour? * (1 Point) BREAD Co. uses a job order costing system. At the beginning of January, the company had 2 jobs in process with the following...

Answered: 1 week ago

Question

★★★★★
Feedback Print A 5 nC charge is located at the origin. What are the electric fields at the positions A = (10 cm, 0 cm), B = (-10 cm, 10 cm), and C = (-10 cm, -10 cm)? Write each electric field vector...

Answered: 1 week ago

Question

★★★★★
A History Achievement Test out of 80 points is administered to a Grade 10 class of 30 students. Their scores are randomly listed below. 78 46 61 49 58 61 64 58 55 80 40 52 78 55 63 55 49 59 64 58 53...

Answered: 1 week ago

Question

★★★★★
6. (a, b, c, d) BSO, Inc. has current assets of $1,040,000 and current liabilities of $520,000. resulting in a current ratio of 2.0. Calculate the current ratio and determine whether it will...

Answered: 1 week ago

Question

★★★★★
What is a make-or-buy decision?

Answered: 1 week ago

Question

★★★★★
The graph shown represents the history of a person learning the material on limits and continuity in this book. At time t2, the student's mind goes blank during a quiz. At time t4, the instructor...

Answered: 1 week ago

Question

★★★★★
George finds a company that charges 59$ per day for each $1,000 borrowed. If he borrows $3,000 for 60 days, what amount will he repay, and what annual interest rate will he pay the company?

Answered: 1 week ago

Question

★★★★★
Let a1, a2, a3,..., an,... be a geometric sequence. In Problems 15-24, find the indicated quantities 16.a1= 32; r = -1/2; a2= ?; a3 = ?; a4 = ? 18.a1= 3; a7 = 2,187; r = 3; S7 = ? 20.a1= 240; r =...

Answered: 1 week ago

Question

★★★★★
explain how you would assess self-confidence,

Answered: 1 week ago

Question

★★★★★
Provide specific examples of the derivation of the PST knowledge base from research with elite athletes and athletecoach experiences.

Answered: 1 week ago

Question

★★★★★
Describe the elements of PETTLEP imagery, including how you would include these in an imagery training program.

Answered: 1 week ago

Previous Question Next Question