Interest earned on the sinking fund in the third year

Assignment Help Financial Management

Reference no: EM13722991

Copernicus borrows $L and repays the principal by making ten annual payments at the end of the year into a sinking fund which earns an annual effective rate of 8%. The interest earned on the sinking fund in the third year is $85.57. Determine L.

Reference no: EM13722991

Questions Cloud

Interest on the sinking fund is compounded annually : A company agrees to repay a loan over five years. Interest payments are made annually and a sinking fund is built up with five equal annual payments made at the end of the year. Interest on the sinking fund is compounded annually.

Annual effective rate on the sinking fund : Quetzalcoatl and Tonantzin each take out a 17-year loan of $L. Quetzalcoatl repays his loan using the amortization method, at an annual effective rate of i. He makes an annual payment of $500 at the end of each year.

How much must ron deposit in sinking fund each six months : Ron borrows $20,000 for 20 years at an annual rate of interest of 10% convertible semi-annually. He repays $500 in interest at the end of each six months. The principal and the remaining accrued interest are to be paid at the end of 20 years by equal..

Identify how official history is represented in repositories : identify how the official history is represented in repositories of human civilization, spaces that are also known as museums. Pay particular attention to the spatial management of the exhibit.

Interest earned on the sinking fund in the third year : Copernicus borrows $L and repays the principal by making ten annual payments at the end of the year into a sinking fund which earns an annual effective rate of 8%. The interest earned on the sinking fund in the third year is $85.57. Determine L.

Determine an effective method for performing : If you have questions on how to perform an annotated bibliography, use a search engine to determine an effective method for performing this portion of the assignment. There is no "required" or "preferred" method for this course.

What proportion of the next payment is interest : A loan is being repaid by 2n level payments, starting one year after the loan. Just after the nth payment the borrower finds that she still owe (3/4) of the original amount. What proportion of the next payment is interest?

Explain why tempering cycle is essentially required : Both Diamond and Graphite are made from carbon. However diamond is considered the hardest material while graphite is brittle and slippery. Explain this difference from atomic bonding view point

Address organization change : 1. How does this theory address organization change? 2. What are the leader's behaviors and characteristics?

User Account

All Pages