Hi all
Can anyone help me with the solution of those 2 problems for my final exam revision
1) A loan of $8,000 is to be repaid with quarterly payments for two years with an interest rate of 4%
compounded quarterly. Find the quarterly payment and construct an amortization schedule
Given:
Solution:
a.
b.
c.
Amortization Schedule
2) ADG Company issues $1,000,000 worth of bonds to raise capital to improve its company’s facilities.
What semi-annual deposits must be made into a sinking fund earning interest at 8% compounded semi-
annually to redeem the bonds at the end of 15 years? Construct a sinking fund schedule for the first 2
years.
Given:
Solution:
a.
b.
c.
Sinking Fund Schedule
Can anyone help me with the solution of those 2 problems for my final exam revision
1) A loan of $8,000 is to be repaid with quarterly payments for two years with an interest rate of 4%
compounded quarterly. Find the quarterly payment and construct an amortization schedule
Given:
Solution:
a.
b.
c.
Amortization Schedule
2) ADG Company issues $1,000,000 worth of bonds to raise capital to improve its company’s facilities.
What semi-annual deposits must be made into a sinking fund earning interest at 8% compounded semi-
annually to redeem the bonds at the end of 15 years? Construct a sinking fund schedule for the first 2
years.
Given:
Solution:
a.
b.
c.
Sinking Fund Schedule