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?

Question

Reagan

Mathematics

5 April, 09:13

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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Answers (1)

Know the Answer?

Lincoln · Answer 1

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