SOLUTION: A buyer agrees to pay a lump sum of 120,000.00 in 6 years. Until then he will make monthly simple interest payments to the seller @ 12%.
a. find the amount of each interest paymen
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a. find the amount of each interest paymen
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Question 21587: A buyer agrees to pay a lump sum of 120,000.00 in 6 years. Until then he will make monthly simple interest payments to the seller @ 12%.
a. find the amount of each interest payment
b. Buyer sets up a sinking fund to save the 120,000.00. find the size of buyers semiannual payments if the money earns 10.25%.
c. prepare table showing the amount in the sinking fund after each deposit. Answer by Paul(988) (Show Source):
You can put this solution on YOUR website! p=120000, i=0.12, n=6
simpliy
A=236858 (rouunded)
a) 236858
0.1025/2 = 0.05125
simpliy
A=218601 (Rounded)
b) 218601
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