Frieda will discharge a debt of R500 000 six years from now, using the sinking fund method. The interest of the debt is 15.6% per year, paid quarterly. The sinking fund earns interest at a rate of 8.4% per year, compounded monthly. The total yearly cost to discharge the debt (to the nearest rand) is [1] R142 375. [2] R42 000. [3] R78 000. [4] R93 834. [5] R128 833.
Frieda will discharge a debt of R500 000 six years from now, using the sinking fund method. The interest of the debt is 15.6% per year, paid quarterly. The sinking fund earns interest at a rate of 8.4% per year, compounded monthly. The total yearly cost to discharge the debt (to the nearest rand) is [1] R142 375. [2] R42 000. [3] R78 000. [4] R93 834. [5] R128 833.
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
Section: Chapter Questions
Problem 1PS
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Frieda will discharge a debt of R500 000 six years from now, using the sinking fund method. The interest of the debt is 15.6% per year, paid quarterly. The sinking fund earns interest at a rate of 8.4% per year, compounded monthly.
The total yearly cost to discharge the debt (to the nearest rand) is
[1] R142 375.
[2] R42 000.
[3] R78 000.
[4] R93 834.
[5] R128 833.
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