Cindy borrows 13500 for 12 years at an annual effective


Cindy borrows 13,500 for 12 years at an annual effective interest rate of i. She accumulates the amount necessary to repay the loan by a sinking fund. Cindy makes 12 payments of P at the end of each year, which includes payment on the loan at an annual effective interest rate of i and payment into a sinking fund on which the annual effective interest rate is 4%. If the annual effective rate on the loan had been 2i instead of i, Cindy's total annual payment would have been 1.2 P. Find the amount P.....

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Cindy borrows 13500 for 12 years at an annual effective
Reference No:- TGS01246917

Expected delivery within 24 Hours