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Q3 A debt of RM 200,000 bearing interest at 5% annually is to be discharged by the sinking fund method. If five equal deposits are
Q3 A debt of RM 200,000 bearing interest at 5% annually is to be discharged by the sinking fund method. If five equal deposits are made into a fund pays 4% compounded annually, (a) a find the annual interest payment, (2 marks) (CLO3:PL06:C3)(CLO3:PL07:C3) (6) b find the size of the annual deposit into the sinking fund, (4 marks) (CLO3:PLO6:C3)(CLO3:PLO7:C3) (c) ) what is the annual cost of this debt? (2 marks) (CLO3:PL06:C3)(CLO3:PL07:C3) (d) construct the sinking fund schedule. (5 marks) (CLO3:PL06:04)(CLO3:PL07:04)
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