Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Calculate the average amount of interest paid on all three loans. You borrow 1 5 0 0 0 and replay the loan over 8 years.

Calculate the average amount of interest paid on all three loans. You borrow 15000 and replay the loan over 8 years. At the end of each year, you make interest payment to the lender at an annual effective rate of 9% and also make level payments to a sinking fund which accumulates to 15000 after 8 years. If your total annual payment is 2876.65 what effective annual rate is earned by the sinking fund?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Wealthtech Book The FinTech Handbook For Investors Entrepreneurs And Finance Visionaries

Authors: Susanne Chishti, Thomas Puschmann

1st Edition

1119362156, 978-1119362159

More Books

Students also viewed these Finance questions

Question

How may mindfulness enhance sport performance?

Answered: 1 week ago

Question

Networking is a two-way street. Discuss this statement.

Answered: 1 week ago