Ashley borrows 3000 for 10 years at 13 annual effective she, Ask an Expert

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Ashley borrows $3,000 for 10 years at 13% annual effective. She pays the interest yearly, and the principal by means of two sinking funds. One-third of the principal is repaid by a sinking fund earning 17% effective annually, and the other two-thirds by a sinking fund earning 12% effective annually.

(a) Find Ashley's total annual payment and the rate of interest she is really paying on her loan.

(b) Redo (a) if Ashley puts one-third of her total sinking fund deposit in the 17% fund and two-thirds into the 12% fund.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92719317

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