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A loan of 20,000 is being repaid with monthly payments for 5 years using the sinking fund method. The loan charges 10% interest compounded twice
A loan of 20,000 is being repaid with monthly payments for 5 years using the sinking fund method. The loan charges 10% interest compounded twice a year. The sinking fund earns an annual effective interest rate of 8%. a Calculate the interest payment that is paid monthly to service the loan and the sinking fund deposit paid monthly. b. Calculate the amount in the sinking fund immediately after the 30th payment.
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