J A borrows $11000 for 9 years at 12% convertible semiannually. A pays the interest semiannually and replaces the principal by means of deposits at the end of every year for 9 years into a sinking fund which earns 10% effective. Find the total dollar amount which A must pay over the 9- year period to completely repay the loan. ANSWER =$
J A borrows $11000 for 9 years at 12% convertible semiannually. A pays the interest semiannually and replaces the principal by means of deposits at the end of every year for 9 years into a sinking fund which earns 10% effective. Find the total dollar amount which A must pay over the 9- year period to completely repay the loan. ANSWER =$
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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Transcribed Image Text:J
A borrows $11000 for 9 years at 12% convertible semiannually. A pays the interest
semiannually and replaces the principal by means of deposits at the end of every year for 9 years into a sinking
fund which earns 10% effective. Find the total dollar amount which A must pay over the 9- year period to
completely repay the loan.
ANSWER =$
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