Question
Andrew borrows 360,000 at i=.05. He repays this loan by paying off only the interest due at the end of each year to the lender
Andrew borrows 360,000 at i=.05. He repays this loan by paying off only the interest due at the end of each year to the lender and depositing a level amount Y at the end of each year into a sinking fund account offering 8% APY so as to accumulate the full balance of the loan amount in the sinking fund at the end of 20 years.
What value Y must he deposit into the SF account at the end of every year?
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Finite Mathematics and Its Applications
Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair
12th edition
978-0134768588, 9780134437767, 134768582, 134437764, 978-0134768632
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