Alan borrows 18000 for eight years and agrees to make


Alan borrows 18000 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 receives 12% nominal interest convertible quarterly. Find the amount by which the sinking fund is short of repaying the loan at the end of the eight years.

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Financial Management: Alan borrows 18000 for eight years and agrees to make
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