Topic: Amortization of Debt and Sinking Fund

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0?. A loan is being repaid with 10' payments of 1,000 at the end of each half year followed by 10 payments of 500 at the end of each halfyear. If the nominal rate of interest convertible semiannually is 5%, nd the outstanding loan balance immediately after seven payments have been made. Use both methods. 09. A company borrowed 1,000,000. The company set up a sinking fund at 6% compounded semiannually to retire the debt in 15 years. At what rate compounded semiannually would it be less expensive to amortize the debt.05. A loan of 80,000 is made with interest payable semiannually at the rate 7% compounded semiannually. Find the semiannual expense of the debt to the debtor, A. if he discharges all liability as to principal and interest by paying his creditor equal sums at the end of each 6 months for 7 years; B. If he pays interest as due and accumulates a sinking fund to pay the principal at the end of 7 years, with the fund invested at 4.5% compounded semiannually