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show work, please do not use financial calculator as basis for proof 10. [8] A loan of $20000 bears interest on the amount outstanding at
show work, please do not use financial calculator as basis for proof
10. [8] A loan of $20000 bears interest on the amount outstanding at ji = 10%. A deposit is to be made in a sinking fund earning interest at ji = 4%, which will accumulate enough to pay one-half of the principal at the end of 10 years. In addition, the debtor will make level payments to the creditor, which will pay interest at ji = 10% on the outstanding balance first and the remainder will repay the principal. What is the total annual payment, including that made to creditor and that deposited in the sinking fund, if the loan is to be completely retired at the end of 10 years? 10. [8] A loan of $20000 bears interest on the amount outstanding at ji = 10%. A deposit is to be made in a sinking fund earning interest at ji = 4%, which will accumulate enough to pay one-half of the principal at the end of 10 years. In addition, the debtor will make level payments to the creditor, which will pay interest at ji = 10% on the outstanding balance first and the remainder will repay the principal. What is the total annual payment, including that made to creditor and that deposited in the sinking fund, if the loan is to be completely retired at the end of 10 yearsStep by Step Solution
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