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This is the entire problem. It does not explain C. Can you do this without that information? Chapter 5 Homework Set: Problem 7 Previous Problem
This is the entire problem. It does not explain C. Can you do this without that information?
Chapter 5 Homework Set: Problem 7 Previous Problem Problem List Next Problem (2 points) (Exercise 5.17) A has borrowed $25000 on which interest is charged at 7.5% affective. A is accumulating a sinking fund at 6.8% effective to repay the loan. At the end of 10 years the balance in the sinking fund is $12796.99. At the end of the 11th year A makes a payment of $2810. a) How much of the $2810 pays interest currently on the loan? ANSWER=$ b) How much of the $2810 goes into the sinking fund? ANSWER=$ c) How much of the $2810 should be considered as interest? ANSWER=$ d) How much of the $2810 should be considered as principal? ANSWER=$ e) What is the sinking fund balance at the end of the 11th year? ANSWER=$ Chapter 5 Homework Set: Problem 7 Previous Problem Problem List Next Problem (2 points) (Exercise 5.17) A has borrowed $25000 on which interest is charged at 7.5% affective. A is accumulating a sinking fund at 6.8% effective to repay the loan. At the end of 10 years the balance in the sinking fund is $12796.99. At the end of the 11th year A makes a payment of $2810. a) How much of the $2810 pays interest currently on the loan? ANSWER=$ b) How much of the $2810 goes into the sinking fund? ANSWER=$ c) How much of the $2810 should be considered as interest? ANSWER=$ d) How much of the $2810 should be considered as principal? ANSWER=$ e) What is the sinking fund balance at the end of the 11th year? ANSWER=$Step by Step Solution
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