Find the level sinking fund deposit

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Reference no: EM131969692

An annual payment loan of 65,000 is made for a term of 10 years at 7.3%. The lender only wants interest payments until the end of year 10 when a balloon payment is made. The borrower will make annual year-end deposits into a sinking fund earning 4.8%. Find:

(a) The level sinking fund deposit;

(b) the balance in the sinking fund at time 5

Reference no: EM131969692

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