a €6000 loan is to be repaid at the end of 4.5 years by the sinking fund method. Interest is charged at 10% compounded semiannually. The debtor establishes a sinking fund that earns 12% interest compounded semi annually. What is the total cost to debtor at the end of every 6 months

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
ChapterM: Time Value Of Money Module
Section: Chapter Questions
Problem 2E: Future Value Hugh Colson deposited 20,000 in a special savings account that provides for interest at...
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a €6000 loan is to be repaid at the end of 4.5 years by the sinking fund method. Interest is charged at 10% compounded semiannually. The debtor establishes a sinking fund that earns 12% interest compounded semi annually. What is the total cost to debtor at the end of every 6 months

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