Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please show all your steps and working in detail: (Answers to 2 decimal places) All interest rates are compounded semi-annually unless it specifically says otherwise!
Please show all your steps and working in detail: (Answers to 2 decimal places) All interest rates are compounded semi-annually unless it specifically says otherwise!
Farid has a loan for S6300. He will make weekly payments (52 payments per year) of interest only for 6 years, and then his final payment will also include the initial amount of the loan a) If his weekly payments (except the last) are $5.9101, what is the effective annual interest rate? Farid is planning to pay accumulate the money to pay off the loan by making regular deposits (at the end of each period) in a sinking fund paying an effective annual rate of 9% per year. b) If he makes weekly deposits (52 weeks in a year), how much is each deposit? C) If he makes monthly deposits, how much is each deposit? d) The answer to part c) is more than 4 times the answer to part b)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started