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An investor lends RM10000 to be repaid with ten payments of RM1627.50 at the end of each year. The investor deposits RM427.50 from each of
An investor lends RM10000 to be repaid with ten payments of RM1627.50 at the end of each year. The investor deposits RM427.50 from each of the first five payments into a sinking fund earning an annual effective interest rate of 11.5%. The investor deposits RMX from each of the last five payments into the sinking fund. At the end of ten years, the accumulated amount in the sinking fund is equal to the principal of the loan. i) Calculate the sinking fund deposit X. ii) Calculate the net interest in year eight
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