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Ontario Credit Union borrowed exist225.000 at 10% compounded semi-annually from League Central to build an office complex. The loan agreement requires payment of interest at
Ontario Credit Union borrowed exist225.000 at 10% compounded semi-annually from League Central to build an office complex. The loan agreement requires payment of interest at the end of every 6 months. In addition, the credit union is to make equal payments into a sinking fund so that the principal can be retired in total after 15 years. Interest earned by the fund is 12% compounded semi-annually. (a) What is the semi-annual interest payment on the debt? (b) What is the size of the semi-annual deposits into the sinking fund? (c) What is the total annual cost of the debt? (d) What is the interest earned by the fund in the 14th payment interval? (e) What is the book value of the debt after 10 years? (a) The interest payment is exist (Round the final answer to the nearest dollar as needed. Round all intermediate values to six decimal places as needed.) (b) The size of the payment is exist (Round the final answer to the nearest dollar as needed. Round all intermediate values to six decimal places as needed.) (c) The cos: is exist (Round the final answer to the nearest dollar as needed. Round all intermediate values to six decimal places as needed.) (d) The interest earned is exist (Round the final answer to the nearest dollar as needed Round all intermediate values to six decimal places as needed) (e) The book value is exist (Round the final answer to the nearest dollar as needed Round an intermediate values to six decimal places as needed)
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