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Annuity of Business Mathematics

Asked Feb 27, 2011, 08:13 AM — 1 Answer
Ryan wishes to borrow 10000.Meade and Halliday offer to lend the money with following term:

Meade would be repaid with 10 equal annual payment made at the end of each year at 8% interest effective annually.

Halliday charges an annual effective interest rate of I with Ryan accumulating the amount necessary to repay the loan by means of 10 annual deposits at the end of each year into sinking fund earning 7% interest effective annually.

The total payment(principal and interest) is same for Maede and Halliday.

Calculate I.

1 Answer
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Curlyben Posts: 18,167, Reputation: 8753
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Feb 27, 2011, 08:38 AM
Thank you for taking the time to copy your homework to AMHD.
Please refer to this announcement: http://www.askmehelpdesk.com/finance...-b-u-font.html
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