What is the borrowers total cash outlay every 6


A lender providing a loan of $5.5 million requires semi-annual payment of interest at a nominal rate of 6.1% per year, and repayment of the $5.5 million principal at the end of 10 years. The borrower plans to accumulate that principal for repayment at the end of 10 years using level semi-annual deposits into a sinking fund that earns interest at a nominal rate of 4.4% per year when compounded semiannually. What is the borrower’s total cash outlay every 6 months?

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Financial Management: What is the borrowers total cash outlay every 6
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