00:02
It is given that total amount borrowed by cnd by cindy is equal to $13 ,500 and total time to pay loan that is to a year's now rate of interest that is let us suppose r percent so total total rate of interest are present now total interest paid by zendi for loan so this is equal to that is capital i is equal to 13 ,500 multiply to 12 multiplied to are over 100 so this is equal to 16 120 r so now the effective annual interest rate on sinking fund that is 8%.
02:02
So now we need to calculate annual deposit to sinking fund.
02:21
So our total amount will be p multiplied to 1 plus r to the whole power and negative 1 over r.
02:35
So now here the total amount that is equal to 13 ,500.
02:45
Rate of interest 0 .08 so here will be 13 ,500 is equal to the p multiplied to 1 plus 0 .08 whole power 12 negative 1 over 0 .08 the the principal amount p will be 13 ,500 multiplied to 0 .08 over 1 .0 .08 to the whole power 12 so this was equal to 7 ,700 and 11 .382.
03:27
Now the total amount, sorry, the total annual payment, that is a p, is increased to 1 .1p when rate of interest increases to 2i, as compared to sorry as compared to the interest i now further simplifying that is 1 .1 multiply to 13 ,500 multiply to 12 multiply to sorry that is r over 100 plus 10 ,7881.
04:47
0 .448 over 12 is equal to 13 ,500 multiply to 12 multiplied to 2 times of r over 100 plus 10 ,781 .48 over 12.
05:11
So here 12, 12 get cancelled out, 0 0 get cancelled out, 00 get cancelled out, 00 get cancelled out.
05:18
So here will be 1 ,782i plus 11 ,859 .59 is equal to 3 ,2i plus 10 ,781 .448...