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A man wishes to borrow 100$ for two years using the sinking fund method. He pays interest annually, at an annual effective interest rate of
A man wishes to borrow 100$ for two years using the sinking fund method. He pays interest annually, at an annual effective interest rate of 5%. Construct a sinking fund schedule if he replaces the principal with semiannual deposits in a sinking fund earning a nominal interest rate 4% convertible quarterly. The sinking fund table must be constructed in quarters (Periods : 0, 1/4, 1/2, ...,2).
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