A $100,000 debt is being repaid over 10 years using a sinking fund earning j₁ = 6%.What is the book value of the debt after 4 years? (Answer to the nearest dollar)

Question

Quizplus · Accepted Answer

The book value of the debt after 4 years is the original debt minus the accumulated value of the sinking fund. The sinking fund accumulates at 6% annually, and the debt is being repaid over 10 years. After 4 years, the remaining debt is $66,811.

A $100,000 Debt Is Being Repaid Over 10 Years Using