Ariells borrows 400.000 at i-.03. She repays this loan by paying off only the interest due at the end of each year to the lender and depositing a level amount Y at the end of each year into a sinking fund account offering 6% APY so as to accumulate the full balance of the loan amount in the sinking fund at the end of 15 years. Find the AEIR that Arielle has ended up paying on this loan.

Ariells borrows 400.000 at i-.03. She repays this loan by paying off only the interest due at the end of each year to the lender and depositing a level amount Y at the end of each year into a sinking fund account offering 6% APY so as to accumulate the full balance of the loan amount in the sinking fund at the end of 15 years. Find the AEIR that Arielle has ended up paying on this loan.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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