Sinking fund method, A borrower is repaying the loan with the 10 annual installments of, Financial Management

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Sinking fund method

A borrower is repaying the loan with the 10 annual installments of $2000. Half of the loan is repaid by amortization technique at an effective rate of i = 0.06. The other half of the loan is repaid by the sinking fund method in which the lender receives i = 0.06 and the sinking fund accumulates at i = 0.05. Find the amount of the loan to the nearest dollar.

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Financial Management: Sinking fund method

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Financial Management: Sinking fund method

Reference No:- TGS0875135

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Recent Questions Asked Financial Management

Q : Compute the outstanding loan balance

Q : Determine an expression for the present value

Q : Determine the outstanding loan balance

Q : Compute the amount of interest paid

Q : Sinking fund method

Q : Determine the amount of principal

Q : Find out the amount of the final payment

Q : Desired quantity of finished goods inventory

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Request for Solution File

Ask an Expert for Answer!!

Financial Management: Sinking fund method

Reference No:- TGS0875135

Recent Questions Asked Financial Management

Q : Compute the outstanding loan balance

Q : Determine an expression for the present value

Q : Determine the outstanding loan balance

Q : Compute the amount of interest paid

Q : Sinking fund method

Q : Determine the amount of principal

Q : Find out the amount of the final payment

Q : Desired quantity of finished goods inventory

Q : Non-quantitative partner

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