Find the net amount of the loan at the end of years

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Reference no: EM131970885

A loan of 5,000 is repaid by making semiannual interest payments to the lender at a nominal rate of interest of 10% per annum compounded semiannually; and making quarterly sinking fund deposits that will accumulate to the original loan amount at the end of 5 years.

The sinking fund earns a nominal rate of interest of 6% per annum compounded monthly. Find the net amount of the loan at the end of 3.5 years.

Reference no: EM131970885

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