Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A $42,500 loan was cleared in 7 years by setting up a sinking fund that was earning 6.75% compounded semi-annually. The deposits were made into

image text in transcribed

image text in transcribed

A $42,500 loan was cleared in 7 years by setting up a sinking fund that was earning 6.75\% compounded semi-annually. The deposits were made into the fund at the end of every 6 months. a. Calculate the size of the sinking fund deposits. Round up to the next cent b. Calculate the total amount of interest earned by the fund. (x) Round to the nearest cent

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

Financial Valuation

Authors: James R. Hitchner

4th Edition

1119286603, 978-1119286608

More Books

Students also viewed these Finance questions