Question
A loan of $60000 is due in 10 years from today. The borrower wants to make annual payments at the end of each year into
A loan of $60000 is due in 10 years from today. The borrower wants to make annual payments at the end of each year into a sinking fund that will earn compound interest at an annual rate of 10 percent.
a) What will the annual payments have to be?
b) Suppose that the monthly payments earn 10% interest, compounded monthly. What would the annual payments be?
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The Finance Book
Authors: Stuart Warner, Si Hussain
2nd Edition
1292401982, 978-1292401980
