Answered step by step
Verified Expert Solution
Question
1 Approved Answer
An 8% 10-year loan of 10,000 is to be paid by the sinking fund method, with service payment $900 and sinking fund payments made at
An 8% 10-year loan of 10,000 is to be paid by the sinking fund method, with service payment $900 and sinking fund payments made at the end of each year. The effective rate of interest earned in the sinking fund is 9% per annum. Immediately before the seventh payment is due, the lender requests that the loan is repaid immediately. Calculate the net amount of the loan at that time. A. $ 4,959.54 B. $5,121.78 C. $ 4,821.78 D. $5,034.57 E. $5,392.10
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started