To travel to America via the ship Titanic, Joe made a P100,000 loan which is to be repaid over a term of 2 years at 7.2% interest convertible quarterly. The lender wants only payments of interest until the end of the term when the loan balance P100,000 must be paid in full. The borrower will make level quarter-end payments to a sinking fund earning 6% payable quarterly. 1.) How much is each quarterly sinking fund deposit? 2.) Calculate the net interest paid in the 6th payment.(Hint: Net interest=Total payment at time t-Principal paid at time t)
To travel to America via the ship Titanic, Joe made a P100,000 loan which is to be repaid over a term of 2 years at 7.2% interest convertible quarterly. The lender wants only payments of interest until the end of the term when the loan balance P100,000 must be paid in full. The borrower will make level quarter-end payments to a sinking fund earning 6% payable quarterly. 1.) How much is each quarterly sinking fund deposit? 2.) Calculate the net interest paid in the 6th payment.(Hint: Net interest=Total payment at time t-Principal paid at time t)
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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To travel to America via the ship Titanic, Joe made a P100,000 loan which is to be repaid over a term of 2 years at 7.2% interest convertible quarterly. The lender wants only payments of interest until the end of the term when the loan balance P100,000 must be paid in full. The borrower will make level quarter-end payments to a sinking fund earning 6% payable quarterly.
1.) How much is each quarterly sinking fund deposit?
2.) Calculate the net interest paid in the 6th payment.(Hint: Net interest=Total payment at time t-Principal paid at time t)
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