Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please solve all. For theory of interest class HW. 1. A loan from Mr. A to Mr. B of 5000 for 8 years at 6%
please solve all. For theory of interest class HW.
1. A loan from Mr. A to Mr. B of 5000 for 8 years at 6% is to be repaid by Mr. B payiing the annual interest to Mr. A and at the end of the 8th year Mr. B paying the annual interest plus the full amount of 5000. Mr. B does pay the interest each year but also puts a level amount into a high interest sinking fund account (12%) each year so that at the end of the 8th year, the sinking fund has exactly enough money (5000) to pay back the loan. How much money is in the sinking fund at the end of the 4 the year? 2. An loan of 10000 at 10% is to be paid off by payments of 4000 at end of each of the first 2 years and a different payment sufficient to pay off the loan at the end of the third year. Make an amortization table to show the year, the payent amount, the interest paid each year, the principal paid each year and the outstanding balance at the end of each year. 3. A loan of size L is to be paid off by payments of 2000 each year for 10 years. The principal repaid in year 2 is 800. Find the interest rate i and the loan size LStep 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