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A 15 year 500000 loan will be repaid by the sinking fund methods. Interest only must be paid at the end of each year. At

A 15 year 500000 loan will be repaid by the sinking fund methods. Interest only must be paid at the end of each year. At the same time, 15 equal annual deposits will be made to a sinking fund that is to accumulate the 500000 needed to repay the principle after 15 years. Interest in the loan is 14 compounded annually and the sinking fund will earn 10% compounded annually.

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