Determine the balance in the sinking fund

Assignment Help Mathematics
Reference no: EM131167404

John borrows 1000 for 10 years at an annual effective interest rate of 10%. He can repay this loan using the amortization method with equal size payments of P at the end of each year. Instead, John repays the 1000 using a sinking fund that pays an annual effective rate of 14%. The deposits to the sinking fund are equal to P minus the interest on the loan and are made at the end of each year for the next 10 years. Determine the balance in the sinking fund immediately after the repayment of the loan.(a) 213 (b) 218 (c) 223 (d) 230 (e) 237

Reference no: EM131167404

Questions Cloud

Interest payments and sinking fund payments : The total of all payments (i.e. interest payments and sinking fund payments) made by Lori over the 10-year period is X. Find X. (a) 15803 (b) 15853 (c) 15903 (d) 15953 (e) 16003
Find confidence interval for average width of elevator rail : Find a 95% confidence interval for the average width of an elevator rail. -  Do you need to assume that the widths of elevator rails are normally distributed?
What are the economic effects of an appreciation of dollar : Can ticket "scalping" be justified? Explain using economic analysis. What are the economic effects of an appreciation of the dollar in foreign exchange markets
Explain what is meant by a modular lattice : Explain what is meant by a modular lattice. Describe some of the properties of modular lattices and describe how modular lattices arise in the study of projective geometry
Determine the balance in the sinking fund : The deposits to the sinking fund are equal to P minus the interest on the loan and are made at the end of each year for the next 10 years. Determine the balance in the sinking fund immediately after the repayment of the loan.(a) 213 (b) 218 (c) 22..
What are some major economic events : Choose the 10-year period of history between 1950 and today that you are going to research. What is it about this period of history that interests you? What are some major economic events that took place during this period?
What size sample would need to take : What size sample would you need to take?- Is the finite population correct ( fpc) from the previous chapter relevant here? Why or why not?
Necessity of learning mathematics in school : Imagine that your 12-year-old neighbor is having trouble understanding the necessity of learning mathematics in school, and would like to know how you use mathematics in your workplace. The National Council for Teachers of Mathematics content area..
Multiple increase in the money supply : The creation of new bank reserves could lead to a multiple increase in the money supply. Contractionary monetary policy shifts the reserve supply schedule inward. When a government intentionally lowers the value of its currency, that is called deprec..

Reviews

Write a Review

Mathematics Questions & Answers

  Questions on ferris wheel

Prepare a Flexible Budget Gator Divers is a company that provides diving services such as underwater ship repairs to clients in the Tampa Bay area.

  Logistic map

This assignment has two question related to maths. Questions are related to bifurcation cascade and logistic map.

  Finding the probability of cards

This assignment has questions related to probabiltiy.

  Systems of ode

Find all the xed points, and study their stability and Draw the phase portrait of the system, as well as the graphs of the solutions in all relevant cases.

  Derive the boolean expression

Derive the Boolean Expression and construct the switching circuit for the truth table stated

  System of equations

Evaluate which equations are under-identified, just-identified, and over-identified.

  Linear programming problem

Linear programming problem consisting of only two constraints with one objective function.

  Find the natural domain

Find the natural domain of the given functions.

  Introduction to numerical methods

Compute the coecients of the polynomials using the term recurrence relation.

  Chart of the topological manifold

De?nition of smoothness of functions on a smooth manifold is chart independent and hence geometric.

  Mathematics in computing

Questions related on mathematics in computing.

  Complex problems

Complex problems

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd