2
answers
0
watching
11
views
27 Nov 2019
A company borrows $130000, which will be paid back to the lender in one payment at the end of 5 years. The company agrees to pay monthly interest payments at the nominal annual rate of 12% compounded monthly. 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 4% compounded monthly. Find the total amount of the monthly payments, that is, the sum of the interest payment and the sinking fund payment.
Total monthly payment
A company borrows $130000, which will be paid back to the lender in one payment at the end of 5 years. The company agrees to pay monthly interest payments at the nominal annual rate of 12% compounded monthly. 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 4% compounded monthly. Find the total amount of the monthly payments, that is, the sum of the interest payment and the sinking fund payment.
Total monthly payment
19 Jan 2023
Unlock all answers
Get 1 free homework help answer.
Already have an account? Log in
Bunny GreenfelderLv2
29 Oct 2019
Get unlimited access
Already have an account? Log in