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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A: The amortization schedule gives information to the borrower and lender about the payment due and the…

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A: Formula: Payment = ( I x Principal amount ) / ( 1 - ( 1 + I )-N ) N = Number of years I = Interest…

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A: given that: Loan Amount=20000 Loan period= 20 years The excel formula is:

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Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.