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17 January, 11:03

Lee associates borrowed $60,000. The company plans to set up a sinking fund that will pay back the loan at the end of 12 years. Assuming a rate of 8% compounded semiannually, the amount to be paid into the fund each period is?

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  1. 17 January, 14:37
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    If your choices are the following:

    A. $1,350

    B. $1,536

    C. $1,653

    D. $5,163

    E. None of these

    Then the answer is B. $1,536.

    Solution:

    $60,000 x. 0256

    = 1,536
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