Determine the year in which the balance of sinking fund

Assignment Help Financial Management

Reference no: EM132029559

John has borrowed $50,000 on which he is paying interest at 17.5% effective per year. He is contributing a level amount m to a sinking fund at the end of each year. The sinking fund earns an annual effective rate of 9%. His combined payment to both the fund and the loan is $9,116.82 annually. Determine the year in which the balance of the sinking fund will be sufficient to repay the loan.

Reference no: EM132029559

Questions Cloud

What is the mean-variance and standard deviation : a. What is the mean, variance, and standard deviation of the aggregate donation, S?

What is their approach to sustainability development : How would you evaluate its strength? What is their mission, goal, and values? What is their approach to sustainability development?

Compute the covariance : Compute the covariance. Compute the correlation coefficient.

Consider the frequency distribution shown : Consider the frequency distribution shown. Calculate the sample mean. Calculate the sample variance and sample standard deviation

Determine the year in which the balance of sinking fund : Determine the year in which the balance of the sinking fund will be sufficient to repay the loan.

What should be hookey internal growth rate : What should be Hookey’s internal growth rate?

Distinguish between simple interest and compound interest : What is the nature of interest? Distinguish between “simple interest” and “compound interest.”

Federal trade commission report on consumer fraud : According to the February 2008 Federal Trade Commission report on consumer fraud and identity theft, 23% of all complaints in 2007 were for identity theft.

What you might do differently in the future : How you encouraged the development of metacognition in your students and how you might improve your instructional practice in this area.

User Account

All Pages