A company borrowed $3,325,000 at an effective rate of 5.15% (compounded monthly) for 5 years and...

A company borrowed $3,325,000 at an effective rate of 5.15% (compounded monthly) for 5 years and 6 months. The company will NOT make any payments on this loan prior to maturity. To make sure it has the money needed to repay the loan when it comes due, the company is making deposits into a sinking fund at the beginning of each week. The sinking fund pays the company 3.11%.

(a) How much will the company need to have at maturity to pay off this loan?

(b) How much should each sinking fund payment be?

I guess monthly

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Expert Solution

jeff jeffy answered 1 year ago

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