Find the amount by which the sinking fund is short of


Alan borrows $18,000 for eight years and agrees to make quarterly payments of $770. Each of these payments consists of interest for the just completed quarter and a deposit to a sinking fund that has a nominal interest rate of 6% convertible quarterly. For the first six years, each year the lender receiver 8% nominal interest convertible quarterly. For the remaining two years, the lender receives 12% nominal interest convertible quarterly. Find the amount by which the sinking fund is short of repaying the loan at the end of eight years.

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Financial Management: Find the amount by which the sinking fund is short of
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