Answer:
payment after 10 year is $15902.9
Explanation:
Given data:
Borrowed money is 10000
duration = 10 year
interest rate is 9%
interest on sinking fund is 8%
interest payment = 10000\times 0.09 = $900.00
Total amount that need to return along with interest is $10000
Total amount deposit at each year =[tex]\frac{10000 \times 0.08}{1.08^{10-1}}[/tex]
= $690.29
total payment for each year = $900 + $690.29 = $1590.29
payment need to be done after 10 year is [tex]= 1590.29 \times 10 = $15902.9[/tex]
