#### Keuriseutin

##### New member

- Joined
- Nov 8, 2021

- Messages
- 1

Problem: A debt of P1,000,000 whose quarterly interest rate is 4% must be repaid in 5 years. To discharge the debt, quarterly deposits are made into a sinking fund which earns interest at the rate of 10% compounded quarterly.

Question:

1. How much is the book value of the liability at the end of year 3?

My answer: P459,943.71

2. How much is the accumulated value of the sinking fund at the end of year 2?

My answer: P341,993.85

Kindly guide me where did I go wrong with these.. Thank you!!