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work Question 5, 15.5.14 > Part 1 of 13 HW Score: 48.65%, 18 O Points: 0 of 8 Ontario Credit Union borrowed $325,000 at 12%
work Question 5, 15.5.14 > Part 1 of 13 HW Score: 48.65%, 18 O Points: 0 of 8 Ontario Credit Union borrowed $325,000 at 12% compounded semi-annually from League Central to build an office complex. The loan agreement requires payment of interest a end of every 6 months. In addition, the credit union is to make equal payments into a sinking fund so that the principal can be retired in total after 20 years. Interest earned by the is 11% compounded semi-annually. (a) What is the semi-annual interest payment on the debt? (b) What is the size of the semi-annual deposits into the sinking fund? (c) What is the total annual cost of the debt? (d) What is the interest earned by the fund in the 8th payment interval? (e) What is the book value of the debt after 17 years? (1) Prepare a partial sinking fund schedule showing details, including the book value of the debt, for the first three payments, the last three payments, and the totals. (a) The interest payment is $ (Round the final answer to the nearest dollar as needed. Round all intermediate values to six decimal places as needed.)
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