Question

Hi please help me with the problem below, make sure write down detailed steps, thank you!

Question 4 Lauren is repaying a loan of 100,000 using the sinking fund mcthod. At the end of cach ycar, she pays 7000 into a sinking fund earning 8%. At the end of 5 years, Lauren pays off the loan using the sinking fund plus an additional payment of X. Calculate X. Hint: 58,933.79

0 0
Add a comment Improve this question Transcribed image text
Answer #1

The future value of sinking fund and X should equal loan principal

100000=7000/8%*(1.08^5-1)+X

=>X=100000-7000/8%*(1.08^5-1)

=>X=58933.79

Add a comment
Know the answer?
Add Answer to:
Hi please help me with the problem below, make sure write down detailed steps, thank you!...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT