Sinking fund established to repay the loans


Problem:

$6000 is borrowed at 10% compounded semi-annually. The amount is to be paid back in 5 years. If a sinking fund is established to repay the loans and interest in 5 years, and the fund earns 8% compounded quarterly, how much will have to be paid into the fund every 3 months?

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Finance Basics: Sinking fund established to repay the loans
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