The borrower is in a $238,000 loan makes interest payments at the end of each six...

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The borrower is in a $238,000 loan makes interest payments atthe end of each six months for eight years. These are computedusing an annual effective discount rate of 6.5%. Each time he makesan interest payment, the borrower also makes a deposit into asinking fund earning a nominal interest rate of 4.2% convertiblemonthly. The amount of each sinking und deposit is D inthe first three years and 2D in the remaning five years,and the sinking fund balance at the end of the eight years is equalto the loan amount. Find D.

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loan 238000 annual discount rate 65 Since the borrower is making deposits semiannually the effective semiannual rate by computing 4212035 effective monthly and See Answer

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The borrower is in a $238,000 loan makes interest payments atthe end of each six months for eight years. These are computedusing an annual effective discount rate of 6.5%. Each time he makesan interest payment, the borrower also makes a deposit into asinking fund earning a nominal interest rate of 4.2% convertiblemonthly. The amount of each sinking und deposit is D inthe first three years and 2D in the remaning five years,and the sinking fund balance at the end of the eight years is equalto the loan amount. Find D.