"AMORTIZATION, INTEREST-BEARING SINKING FUND SCHEDULE. In the interest-bearing SINKING FUND method of discharging a debt, the creditor receives periodic interest, if any, and the face value of the debt, which is the final value of the sinking fund, at the end of the term. Nominal annual interest rate for fund amortization is ANNRATE% and for fund interest is FNDRATE%. NUMYEARS is the term in years. PAYMNINT is the payment interval in months.TOTPAYMN is the total periodic payment including fund interest. VALUSINK is the sinking fund's value at term. EFFRATE% is the yearly effective rate for fund amortization. PRESVALU is the value of debt just after payment for PERIOD#.FUNDINCR and INTADDED are fund's increase and added interest, respectively. PERIOD INTEREST ADDED DEPOSIT FUND INCREASE FUND AMOUNT (end period) 1 $ 0 $1195.14 $1195.14 $1195.14 2 35.85 1195.14 1230.99 2426.13 3 72.79 1195.14 1267.93 3694.00 4 110.82 1195.14 1305.96 5000.02 *** Answers to problems *** (a) Set ANNRATE%=3, FNDRATE%=5, NUMYEAR=4, PAYMNINT=12 (annual= 12 months), PERIOD#=1, VALUSINK=5000. (a) SET PERIOD =1, 2, 3 then 4. the Table is above. Type any key to exit. ||(a) Calculate a sinking fund schedule for the amortization of a$5000 debt bearing 5 % annual interest if the 4 annual deposits are made into the fund which pays 3%, the first due in 1 year. Type , to see answers. Type (F2) to return to helpfile. '' (c) PCSCC Inc., 1993"
