Equivalent amortization rate


A company borrows $75,000 for five years. The company makes quarterly interest payments to lender of $2,250. (12% simple interest). The company makes quarterly deposits of $3,324.03 to the sinking fund which earns 5% compounded quarterly. Describe the equivalent amortization rate compounded quarterly for this loan in the form xx.xx% using standard rules of rounding.

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Mathematics: Equivalent amortization rate
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