What is the total yearly payment

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A company borrows $150000, which will be paid back to the lender in one payment at the end of 9 years. The company agrees to pay yearly interest payments at the nominal annual rate of 12% compounded yearly. At the same time the company sets up a sinking fund in order to repay the loan at the end of 9 years. The sinking fund pays interest at an annual nominal interest rate of 6% compounded yearly. Find the total amount of the yearly payments, that is, the sum of the interest payment and the sinking fund payment. What is the total yearly payment?

Reference no: EM133131375

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