Lee associates borrowed $60,000. the company plans to set up a sinking fund that will pay back the loan at the end of 12 years. assuming a rate of 8% compounded semiannually, the amount to be paid into the fund each period is?

answer: the value should be used for i in the formula of calculation the monthly payment , the interest rate per period is 0.85.

step-by-step explanation:

the given rate of interest i= 85%

in calculating the monthly payment for a loan with an interest rate compounded monthly, the value of the interest rate per period we use in the formula must be in decimal form.

to convert it in decimal, we divide it by 100, we get

hence, the value should be used for i in the formula of calculation the monthly payment , the interest rate per period is 0.85.