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George buys new computer equipment for $96,000 from his supplier, Super Ace Computers. The financing agreement stipulates annual interest only payments and equal deposits into
George buys new computer equipment for $96,000 from his supplier, Super Ace Computers. The financing agreement stipulates annual interest only payments and equal deposits into a 10 year sinking fund. After 10 years the proceeds of the sinking fund will be used to retire the 96,000 principle. Interest of George's debt is 14.5% compounded annually and interest earned on his sinking fund is 13% compounded annually. What is the size of the annual payment into the sinking fund?
a) 13,920.00
b) 70,723.83
c) 19,131.80
d) 5211.80
e) 15,656.42
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