What is the annualized cost of the debt for a sinking fund

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Problem 1: What is the annualized cost of the debt for a sinking fund that has semi-annual deposits and it is set up to pay off a debt of $20 000 over a period of 5 years? The sinking fund earns 4.6% compounded annually and the loan rate on the debt is 9.2% compounded quarterly.

Select one:

a. $5424.52
b. $5577.52
c. $5447.52
d. $5777.52
e. $5477.52

Reference no: EM132797212

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