Question

Chapter 12 -Exercise 06
Sinking Fund - Majors Trucking, Inc.
Item needed:	18-Wheel Transport Truck
Amount needed:	$118,000
Interest rate:	6%
Payment made:	Annually for 5 Years
Sinking Fund Factor:
Payment	Periodic Interest	Periodic Payment	Balance at
			End of
			Period
1
2
3
4
5

Answer 1

Loan Amount	Interest Rate	Term in Years	Annual Payment
$118,000.00	6.000%	5	$28,012.78
Year	Periodic Interest	Periodic payment	Balance at the end
1	$7,080.00	$28,012.78	$97,067.22
2	$5,824.03	$28,012.78	$74,878.48
3	$4,492.71	$28,012.78	$51,358.42
4	$3,081.51	$28,012.78	$26,427.15
5	$1,585.63	$28,012.78	$0.00

WORKINGS