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A loan of 1 yields the lender rate i per period for n periods, while the borrower replaces the capital in a sinking find earning
A loan of 1 yields the lender rate i per period for n periods, while the borrower replaces the capital in a sinking find earning rate j per period. Find expressions for the following if 1 S t s n: a. Periodic interest paid to the lender. b. Periodic sinking fund deposit. c. Interest earned on sinking fund during the tth period. d. Amount in sinking fund at end of the tth period. e. Net amount of loan at the end of the tth period. f. Net interest paid and principal repaid in period t
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