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Unformatted text preview: Math 373 Quiz 4
3 October 18, 2011 6‘4 l. A loan of 100,000 is being repaid using the sinking fund method over ten years. The sinking fund receives level annual payments such that the amount in the sinking fund after
10 years is just sufficient to repay the loan. The interest rate paid by the sinking fund is 8%. The total annual payment (interest and sinking fund deposit) made each year is 16,027.95.
Determine the interest rate on the loan. o4
2. A loan is being repaid with level monthly payments of 250. The interest rate on the loan is 9%
compounded monthly. The interest in the 10th payment is 44.14. Determine the interest in the 17th payment. I a” PM) W. ”ﬁes/mm:
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$59 (3?? ‘3 TE“) (in???) $le 047/ 3. A loan is being repaid with annual payments over four years. The total interest paid on the loan
is 1340.60 and the total principal paid on the loan is 12,000. Determine the annual effective interest rate on the loan. ;0m‘” WVMMﬁE if ﬂame :Zufitaggaf “t ﬁgﬂm
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