A loan of L is taken over ten years and will be repaid using the sinking fund method with equal size quarterly payments (i.e. end of quarter) each of size 387.57 at a nominal annual interest rate of q% compounded quarterly. The outstanding balance for this loan after the 20th payment is 0.59774L. Calculate L. Give your answer rounded to the nearest whole number (i.e. X).

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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i will 10 upvotes urgent 10152 is incorrect. 10603 is incorrect. 10602 is incorrect. 13683 is incorrect. 198448 is incorrect. Please show correct solution, thank you.
A loan of L is taken over ten years and will be repaid using the sinking fund method with equal size
quarterly payments (i.e. end of quarter) each of size 387.57 at a nominal annual interest rate of q%
compounded quarterly. The outstanding balance for this loan after the 20th payment is 0.59774L.
Calculate L. Give your answer rounded to the nearest whole number (i.e. X).
Transcribed Image Text:A loan of L is taken over ten years and will be repaid using the sinking fund method with equal size quarterly payments (i.e. end of quarter) each of size 387.57 at a nominal annual interest rate of q% compounded quarterly. The outstanding balance for this loan after the 20th payment is 0.59774L. Calculate L. Give your answer rounded to the nearest whole number (i.e. X).
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