A Corporation Takes Out a Loan for $88,000 with Interest

question 75

Multiple Choice

A corporation takes out a loan for $88,000 with interest due every six months for 7-years at j₂.The principal will be paid in one lump sum at the end of 7-years.The corporation makes semi-annual deposits of $5,150.32 into a sinking fund.The semi-annual cost of the loan is $9,110.32.What would be the semi-annual payment if the corporation was to instead pay off the loan using the amortization method,given the interest rate on the loan remained the same at j₂?

• A)$7,790.32
• B)$8,608.19
• C)$8,990.61
• D)$9,231.00

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Definitions:

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A group with which an individual strongly identifies.

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The view or standpoint held by the greater number of individuals within a group or society, often influencing social norms and individual behavior.

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A viewpoint or perspective that is held by a smaller segment of the population, often differing from the majority view.

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