A company borrows $160000, which will be paid back to the lender in one payment at the end of 8 years. The company agrees to pay monthly interest payments at the nominal annual rate of 11% compounded monthly. At the same time the company sets up a sinking fund in order to repay the loan at the end of 8 years. The sinking fund pays interest at an annual nominal interest rate of 15% compounded monthly. Find the total amount of the monthly payments, that is, the sum of the interest payment and the sinking fund payment. Total monthly payment = $ ???
Get Answers For Free
Most questions answered within 1 hours.