A company borrows 150000 which will be paid back to the


A company borrows $150000, which will be paid back to the lender in one payment at the end of 5 years. The company agrees to pay yearly interest payments at the nominal annual rate of 6% compounded yearly. At the same time the company sets up a sinking fund in order to repay the loan at the end of 5 years. The sinking fund pays interest at an annual nominal interest rate of 1% compounded yearly. Find the total amount of the yearly payments, that is, the sum of the interest payment and the sinking fund payment.

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Financial Econometrics: A company borrows 150000 which will be paid back to the
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