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Q1. A company has a debt of $100,000 at j4 = 0.05 that is to be repaid in 6 years through a simple ordinary annuity

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Q1. A company has a debt of $100,000 at j4 = 0.05 that is to be repaid in 6 years through a simple ordinary annuity of equal quarterly payments except the last payment which may need to be adjusted because of rounding up of the previous quarterly payments to nearest dime. Please calculate the value of R and prepare the quarterly payment schedule showing the distribution of payment towards interest and towards principal for repaying the debt using the two methods: a. Amortization Method b. Sum-of-Digit Method schedule. Q2. Suppose the debt is locked-in to the 6 years term with the given interest of j4 = 0.05 so any payment is not possible before end of the term and the company is thus planning to create Sinking Fund to pay the debt amount on the scheduled date. How much will be the monthly deposit to the fund if the company prefers to start a simple ordinary annuity with monthly payments at an interest rate of ji2 = 0.05? Q1. A company has a debt of $100,000 at j4 = 0.05 that is to be repaid in 6 years through a simple ordinary annuity of equal quarterly payments except the last payment which may need to be adjusted because of rounding up of the previous quarterly payments to nearest dime. Please calculate the value of R and prepare the quarterly payment schedule showing the distribution of payment towards interest and towards principal for repaying the debt using the two methods: a. Amortization Method b. Sum-of-Digit Method schedule. Q2. Suppose the debt is locked-in to the 6 years term with the given interest of j4 = 0.05 so any payment is not possible before end of the term and the company is thus planning to create Sinking Fund to pay the debt amount on the scheduled date. How much will be the monthly deposit to the fund if the company prefers to start a simple ordinary annuity with monthly payments at an interest rate of ji2 = 0.05

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