Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. (1 point) a company borrows $100000, which will be

(1 point) A company borrows $100000, which will be paid back to the lender in...

60.1K

Verified Solution

Question

Accounting

image
(1 point) A company borrows $100000, which will be paid back to the lender in one payment at the end of 12 years. The company agrees to pay semi-annually interest payments at the nominal annual rate of 13% compounded semi- annually. At the same time the company sets up a sinking fund in order to repay the loan at the end of 12 years. The sinking fund pays interest at an annual nominal interest rate of 9% compounded semi-annually. Find the total amount of the semi-annually payments, that is, the sum of the interest payment and the sinking fund payment. Total semi-annually payment $

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students