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Consider a loan with amount L to be repaid by the sinking fund method, with level payments at the end of every 6 months for
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Consider a loan with amount L to be repaid by the sinking fund method, with level payments at the end of every 6 months for 10 years. Suppose the loan has nominal interest rate 5% convertible semiannually, and the sinking fund account has effective annual yield rate 4%.
In this question, you may express your answer using ani and sni. (a) What is the interest paid in each payment?(b) What is the amount of sinking fund deposit in each payment?
Consider a loan with amount L to be repaid by the sinking fund method, with level payments at the end of every 6 months for 10 years. Suppose the loan has nominal interest rate 5% convertible semiannually, and the sinking fund account has effective annual yield rate 4%.
In this question, you may express your answer using ani and sni. (a) What is the interest paid in each payment?(b) What is the amount of sinking fund deposit in each payment?
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