8 Kai has an interest only loan for $105,000.00 maturing in 6 years. The interest rate on the loan is 3.250% compounded semi-annually. He will repay the principle at maturity by making annual deposits into a sinking fund paying r(2) = 6.250%. How much are his annual deposits
8 Kai has an interest only loan for $105,000.00 maturing in 6 years. The interest rate on the loan is 3.250% compounded semi-annually. He will repay the principle at maturity by making annual deposits into a sinking fund paying r(2) = 6.250%. How much are his annual deposits
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 14P
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8
Kai has an interest only loan for $105,000.00 maturing in 6 years. The interest rate on the loan is 3.250% compounded semi-annually. He will repay the principle at maturity by making annual deposits into a sinking fund paying r(2) = 6.250%. How much are his annual deposits
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