Find the total amount of the quarterly payments that is the


A company borrows $160000, which will be paid back to the lender in one payment at the end of 6 years. The company agrees to pay quarterly interest payments at the nominal annual rate of 5% compounded quarterly. At the same time the company sets up a sinking fund in order to repay the loan at the end of 6 years. The sinking fund pays interest at an annual nominal interest rate of 14% compounded quarterly. Find the total amount of the quarterly payments, that is, the sum of the interest payment and the sinking fund payment.

Total quarterly payment = $

Solution Preview :

Prepared by a verified Expert
Basic Computer Science: Find the total amount of the quarterly payments that is the
Reference No:- TGS01480866

Now Priced at $10 (50% Discount)

Recommended (94%)

Rated (4.6/5)