5. In order to repay a debt of RM20000, a company decided to establish a sinking fund at 5 %compounded quarterly for 5 years, prepare the sinking fund table for each quarter deposit. 2. RM 500 payment is made every month to amortize a debt of RM4736. By constructing anamortization schedules, how many payments have to be made to settle the loan at 12%compounded monthly.

Note: This question contains two questions. The first question (Q5) has been answered below:

Answered: 5. In order to repay a debt of RM20000,…

5. In order to repay a debt of RM20000, a company decided to establish a sinking fund at 5 % compounded quarterly for 5 years, prepare the sinking fund table for each quarter deposit.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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Question

5. In order to repay a debt of RM20000, a company decided to establish a sinking fund at 5 %
compounded quarterly for 5 years, prepare the sinking fund table for each quarter deposit.

2. RM 500 payment is made every month to amortize a debt of RM4736. By constructing an
amortization schedules, how many payments have to be made to settle the loan at 12%
compounded monthly.

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