6. Consider the following (incomplete) sinking fund schedule (table). Note that there is no payment at t=2. You MUST show your work to answer each of the two parts of this problem. Time Interest Sinking Interest S.F. Bal. in on Fund on After Net Balance Years Loan Deposit S.F. Deposit on Loan 0 $0 $0 $0 $0 $2,000 1 $100 $700 3 $795 $35.44 4 $0 (a) (b) Find the net balance on loan at t=3. Find the sinking fund deposit at t=4.

Corporate Fin Focused Approach
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Author:EHRHARDT
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Chapter4: Time Value Of Money
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6. Consider the following (incomplete) sinking fund schedule (table). Note that there is
no payment at t = 2. You MUST show your work to answer each of the two parts of
this problem.
Time Interest Sinking Interest S.F. Bal.
After
Net
in
on
Fund
on
Balance
Years
Loan
Deposit
$0
S.F.
$0
Deposit on Loan
$0
$0
$100
$2,000
1
$700
3
$795
$35.44
4.
$0
(a)
Find the net balance on loan at t = 3.
(b)
Find the sinking fund deposit at t= 4.
Transcribed Image Text:6. Consider the following (incomplete) sinking fund schedule (table). Note that there is no payment at t = 2. You MUST show your work to answer each of the two parts of this problem. Time Interest Sinking Interest S.F. Bal. After Net in on Fund on Balance Years Loan Deposit $0 S.F. $0 Deposit on Loan $0 $0 $100 $2,000 1 $700 3 $795 $35.44 4. $0 (a) Find the net balance on loan at t = 3. (b) Find the sinking fund deposit at t= 4.
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