Annual Effective Rate Assignment | Homework For You
May 21st, 2020
A $10,000 loan can be repaid quarterly for 5 years using amortization
and an interest rate of j12 = 10% or by a sinking fund to repay both principal and
accumulated interest. If paid by a sinking fund, the interest on the loan will be
j12 = 9%. What annual effective rate must the sinking fund earn to make the
quarterly cost the same for both methods?Get Finance homework help today
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